Centre to woo Seemandhra with financial package, new capital

Government is likely to woo the Seemandhra region with special financial package for its all- round development and help build a new capital with modern amenities but is not in a mood to consider any change in the status of Hyderabad or make it a Union Territory.

The GoM, set up to deal with issues concerning bifurcation of Andhra Pradesh and which held its first meeting today, will try its best to assuage the feelings of Seemandhra region following the decision to create Telangana and offer a sizeable financial package for the all-round development of coastal Andhra and Rayalaseema, highly-placed sources said.
 The central government will help the Seemandhra region to build a new capital but is unlikely to change the status of Hyderabad or make it a Union Territory as it would create more problem in Telangana region. The Union Cabinet on October 3 had decided that Hyderabad will be joint capital of the two states for 10 years. During its deliberations, the GoM will elicit response from ministries of Water Resources, Power, Finance, Road Transport and a few others on issues concerning division of assets, sources said. The GoM has no plan to visit Andhra Pradesh. The ministerial panel will look into the sharing of river water, irrigation resources and other natural resources, especially coal, water, oil and gas between the two states and also inter-se with other states, including the declaration of Polavaram Irrigation Project as a national project.
Decisions will also be taken by GoM on issues arising on account of distribution of assets, public finance, public corporations and liabilities between the two states.

Sources said the GoM will meet again on October 19 which is a clear indication that it was trying to expedite the process of creation of Telangana, notwithstanding protests in Seemandhra region. Yesterday, Home Minister Sushilkumar Shinde, who heads of the GoM, had ruled out going back on the decision to create Telangana. I do not think there is any possibility of going back to the decision to create Telangana, he said.