Telangana separation pangs: Andhra Pradesh struggles to get govt employees to move to new capital

Though the cash-strapped Andhra Pradesh government has doled out lucrative sops to lure its employees to uproot themselves lock, stock and barrel from Hyderabad and move to the new capital city, a series of hurdles has forced the state to put the plan on hold.

The government has wittingly or unwittingly obfuscated the prospect of relocating the new state capital to Amaravathi, the dream destination envisioned by the Telugu Desam government.

For now, the chief minister, other ministers, and a few senior officials are establishing their camp offices to impress upon the people that the administration has begun to work from the new capital city.

The state is grappling with the “special status” issue, as the centre appears to be leaning more towards Bihar. Prime Minister Narendra Modi has announced a dole of Rs. 1.25 lakh crore to the eastern state which is going to polls soon, while not fulfilling its commitment to Andhra Pradesh.

Though Hyderabad has been declared as a common capital for 10 years from the appointed date of bifurcation – June 2, 2014 – for Telangana and Andhra Pradesh, the Andhra Pradesh government has started to make rapid strides towards building a new capital, at least on paper.

However, the government’s woes in the process are all too many, what with its acute fund crunch, bitter criticism from the opposition and a slew of staff issues.

That said, the state has liberally announced sops to motivate the employees to move out of Hyderabad.

Take a look at the stunning largesse doled out by the state government.

- The employees sought a house rent allowance (HRA) of 30 per cent of their basic pay that is limited to cities notified under A1 category by the centre, taking numerous parameters into consideration. As they have this facility already in Hyderabad, the AP government has conceded the demand. That Amaravathi (for now the Capital Region including Vijayawada, Guntur, and many other places) is yet to take shape is a different story.

- The biggest attraction is for all the government employees who will be relocated is a house of their own. The state government is proposing to get the Housing and Urban Development Corporation (HUDCO) to build 10,000 apartments. The migrating employees need not make any down payment for taking ownership of the apartments, as it would be paid by the state government. And, what’s more, the HRA will be diverted towards the Equated Monthly Instalment (EMI) after the possession of the dwelling is given to the employee. If the EMI amount is more than the HRA drawn by an employee (depending on the rank), the government will fill the gap.

- The employees are asking for twin-HRAs: one for them to relocate and stay in the new state capital and the second one to fend for the families who may not immediately move owing to numerous constraints. However, the government has not made any decision on this as yet.

- The all-India services officers would get a rent amount of Rs. 40,000 per month which is a higher amount compared to the amount drawn by senior officers who are already working in the new capital region. This move of the government may also propel the rentals in the “capital city” of Amaravathi.

- Ministers and officials of the cabinet rank have been promised villas.

The State Government has identified 9,500 officials for relocate in the first phase. There are more than 22,000 employees belonging to Andhra Pradesh working in Hyderabad. However, the officials expressed their apprehensions over the loss of an academic year for their children.

Their concern is quite genuine, as nobody knows whether there are so many vacant seats available in educational institutions, and whether their children can cope with the change of location and institution at this stage. So, the employees have urged the government to put off the relocation plan at least until the next academic year.

Apart from these issues, Article 371 (D) that was enshrined in the Constitution in 1975 to thaw the regional issues between Andhra Pradesh and Telangana has now come in the way of a smooth transition and relocation of the children of the government employees after the state is bifurcated.

Article 371 (D) deals with special provisions for Andhra Pradesh for equitable opportunities for people living in different regions of the state.

The state government has constituted a committee to examine the nativity issue, as the children of those living in Hyderabad would be local to the city and not to Andhra region.

The state government is contemplating on raising this issue with the union government when chief minister N Chandrababu Naidu would call on Prime Minister Narendra Modi before this month-end.

However, intriguingly, the scrapping of Article 371 (D) would annul the opportunity of fee reimbursement to students belonging to Andhra studying in Telangana region.

The HRA and the housing scheme issues will likely cause heartburn among government employees already working in the new capital region, as they would surely be discriminated against with respect to such facilities.

Against this background, senior bureaucrats and politicians are gripped by confusion that doesn’t look like it will end anytime soon.