375. The case of Vishalandhra thus rests on arguments which are impressive. The considerations which have been argued in favour of a separate Telangana State are, however, not such as may be lightly brushed aside.
376. The existing Andhra State has faced a financial problem of some magnitude ever since it was crated and in comparison with Telangana the existing Andhra State has a low per capita revenue. Telangana, on ther other hand, is much less likely to be faced with financial embarrassment. The much higher incidence of land revenue in Telangana and an excise revenue of the order of Rs.5 crores per annum principally explain this difference. Whatever the explanation may be, some Telangana leaders seem to fear that the result of unification will be to exchange some settled sources of revenue, out of which development schemes may be financed, for financial uncertainty similar to that which Andhra is now faced. Telangana claims to be progressive and from an administrative point of view, unification, it is contended, is not likely to confer any benefits on this area.
377. When plans for future development are taken into account, Telangana fears that the claims of this area may not receive adequate consideration in Vishalandhra. The Nandikonda and Kushtapuram (Godavari) projects are, for example among the most important which Telangana or the country as a whole has undertaken. Irrigation in the coastal as of these two great rivers is, however, also being planned. Telangana, therefore, does not wish to lose its present independent rights in relation to the utilization of the waters of Krishna and Godavari.
378. One of the principal causes of opposition of Vishalandhra also seems to be the apprehension felt by the educationally backward people of Telangana that they may be swamped and exploited by the more advanced people of the coastal areas. In the Telangana districts outside the city of Hyderabad, education is woefully backward. The result is that a lower qualification than in Andhra is accepted for public services. The real fear of the people of Telangana is that if they join Andhra they will be unequally placed in relation to the people of Andhra and in this partnership the major partner will derive all the advantages immediately, while Telangana itself may be converted into a colony by the enterprising coastal Andhra.
379. Telangana, it has further been urged, can be a stable and viable unit considered by itself. The revenue receipts of this area on current account have been estimated at about Rs. 17 crores, and although the financing of the Krishna and Godavari projects will impose a recurring burden on the new State by way of interest charges, the probable deficit, if any is unlikely to be large. In favorable conditions, the revenue budget may even be balanced or indicate a marginal surplus. This fairly optimistic forecast can be explained or justified by a variety of reasons.
380. One important reason is, of course, that the existing Hyderabad State and Telangana as part of Hyderabad have benefited considerably from the implementation from April, 1952, of the Finance Commissions' recommendations. The increase in central payments from out of the divisible pools of income-tax and Central excise which has been possible under the present arrangements and the reduction in police expenditure for which credit can be taken, as the situation in Telangana improves, more or less offset the loss on account of the abolition of internal customs duties; and if the scope which exists of raising the yield of certain State heads of revenue is fully explored, the financial position of Telangana need not cause anxiety.
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