New State

How the new state formation works?

  • First, the state legislature, in this case the Andhra Pradesh legisltaure, will have to pass a resolution and forward it to the Centre (however, this is not mandatory — Parliament suo motu can take up the issue through a direction from the President)
  • Once it reaches the Centre, the home ministry will examine the issue and send the proposal to the law ministry which in turn whets it and sends it to the Cabinet. The Union Cabinet will have to approve it before placing it in the two Houses of Parliament. Rajya Sabha and Lok Sabha will have to pass the resolution with a two-third’s majority since it will be a Constitution amendment to Article 3 which deals with “formation of new states and alteration of areas, boundaries or names of existing states”.
  • After Parliament gives its seal of approval, begins the complex issue of the physical formation of the state. The logistics required for a new administration will start with Centre sending a team of officials to put things together for creation of the new state.
  • One of the first tasks is the drawing of the boundary — in this case between Andhra Pradesh and Telangana. Other requirements include setting up of administrative and police cadres, transfer of revenue documents and infrastructure such as setting up new office buildings.
  • As for the IAS and IPS cadres and the government employees, they will be given the option to chose between the two states. The sharing of the tax revenues will be done by a negotiating team of the two states under the guidance by the chief secretary of the existing state with the assistance of the existing Accountant General’s office.
  • There is also the issue of devolution of funds, which will be done by the Finance Commission, and revenue sharing between the existing state and the new one. Until the FC frames the formula, the Centre will make an interim allocation. The new state will also have a new high court.
  • As for political governance, the MLAs of the constituencies falling in the new state will automatically become MLAs of the newly formed state. Election for the state Assembly will be held only after the MLAs complete their five year term.