My submittal to Telangana GoM- part 3/3

ToR7

Look into the issues related to power generation, transmission and distribution between the two states

Telangana has ample coal reserves while Seemandhra has none. Seemandhra is blessed with gas reserves that are absent in Telangana. As per the "merger voiding" methodology, all coal reserves may be treated as vested with Telangana while the gas reserves are accounted for with Seemandhra. The share of the other state may be determined in accordance with national policy on par with other states.

Neither Telangana nor Seemandhra has any oil reserves. Allocation to the two states may be determined in accordance with national policy.

This method however poses a problem with respect to coal allocations. Several thermal power plants in Seemandhra have received "extraordinary" coal allocations (i.e. in excess of the amount that would have accrued if the region had been an "other state"). This benefit & the resultant compensation may be quantified along with the other aspects relating to ToR8.

To ensure a fair share in power related matters, the following method may be adopted:

·         Transfer of coal from Telangana to Seemandhra in excess of "other state" based entitlement may be stopped in two years from the appointed date

·         Telangana may construct thermal power plants to utilize the expected "surplus" within the said period or sell it to any party at its sole discretion

·         Seemandhra may make alternate arrangements for the coal within the said period

·         During the two years period, Seemandhra may supply power generated from its gas on a 1:1 unit basis (or any numerical formula as close to 1:1 unit as practicable)

·         Telangana may construct gas based power plants to utilize its "other state" based entitlement within the said period

·         No compensation to Telangana for any loss caused by its own delay in setting up the gas based power plants

·         Hydro-electric power sharing from joint projects may be determined based on mutual agreement or central adjudication if it becomes necessary

·         Any requests from Telangana for funding support towards power plants may be considered favorably in order to help the people of Telangana.

The central government may provide incentives to both states for developing non-conventional energy sources. These shall not be deemed to be a package insofar as bifurcation is concerned.

ToR8

Look into the issues arising on account of distribution of assets, public finance, public corporations and liabilities thereof between the two states

All physical assets including those of public corporations and Government shares in companies & associated liabilities shall be allocated on the following basis:

·         Assets belonging to erstwhile Hyderabad princely state as well as the post-accession part B state of Hyderabad shall be allocated to Telangana

·         Assets belonging to erstwhile Andhra state shall be allocated to Seemandhra

·         All assets other than the above shall be allocated to the state in whose territory they are presently located

·         In case of common assets (e.g. relating to state level institutions or joint projects), the same may be computed and shared as per a formula jointly agreed

·         The liabilities of common assets may be divided in the same ratio as the assets

·         All other liabilities shall be allocated to the corresponding asset

All liabilities relating to public servants including those of public corporations and Government shares in companies & associated assets shall be allocated on the following basis:

·         Pensions shall be allocated based on the local cadre assigned to the individual under the methodology described against ToR9

·         In case of individuals assigned to more than one local cadre under the ToR9 methodology, pensions shall be allocated in the ratio of salary drawn

·         Pension related assets shall be allocated to the corresponding liability

·         Employee loans shall be allocated based on the local cadre assigned to the individual under the methodology described against ToR9

·         Loan related liabilities shall be allocated to the corresponding asset

A High Power Reconciliation & Settlement Committee (HPRSC) may be constituted for a permanent settlement. The committee may consist of three members with representatives of both Governments as ordinary members and a representative nominated by the CAG acting as Chairman. All members may be assisted by a team of experts drawn from various fields. The committee's period of reference may be November 1, 1956 to the appointed day. The term of the committee may be fixed at two years.

HPRSC may be entrusted with the following:

·         Reconcile & compute revenues & receipts as well as expenditure & investment from Telangana & Seemandhra as well as expenditure & investment towards the two future states

·         Reconcile & compute a fair share of central funding including Gadgil share, aid & grants for Telangana & Seemandhra

·         Arrive at a formula for splitting common assets & associated liabilities

·         Decide claims relating to "opportunity losses" & other compensation demands

·         Consider & recommend representations for financial assistance/packages

·         Reconcile & compute the settlements if any to be made

To enable the smooth functioning of the committee, all public servants in both the states may be required to cooperate fully with the committee. Refusal or failure to cooperate with the committee or misleading/obstructing the functioning in any manner shall attract instant disciplinary action.

ToR9

Look into the issues relating to the distribution of the employees in the subordinate as well as all India services between the two states

There have been serious accusations of discrepancies in public service appointments all these years. These include violation of Mulki rules and the subsequent presidential orders. Similarly there have been allegations on the absence of "fair share" to Telangana officials. The fact that the Girglani Commission suggested as many as 35 remedial measures lends credence to the allegations. It is also alleged that several respondents failed to respond totally or submitted misleading data to the Commission.

A High Power Employment Settlement Committee (HPESC) may be constituted for a permanent settlement of the contentious subject. The committee may consist of three members with representatives of both Governments as ordinary members and a representative nominated by GoI acting as Chairman. All members may be assisted by a team of experts drawn from various fields. The committee's period of reference may be November 1, 1956 to the appointed day. The term of the committee may be fixed at two years.

A one time amnesty scheme may be announced for all serving officials and pensioners. Any individual who may have violated Mulki rules and subsequent presidential orders or abetted/aided in such violations may be allowed to disclose the same within a period of three months from the setting up of the committee. Failure to do so or furnishing a false declaration shall attract instant disciplinary action

HPESC may be entrusted with the following:

·         Verify all claims of violations, whether intentional or otherwise

·         Perform audit checks of appointments to verify compliance to rules

·         Study the violations disclosed during the amnesty period & make appropriate recommendations

·         Initiate actions where found necessary

·         Allocate pensioners & serving officials to the appropriate state (and zone if applicable)

·         Reconcile & compute the settlements if any to be made

Pensioners shall be allocated on the following basis:

·         Individuals guilty of violating the applicable rules directly or indirectly shall be assigned to the region they actually belong to

·         All other individuals shall be assigned to the region to which they were assigned to

Serving public officials shall be allocated on the basis of the local cadre they belong to irrespective of where they presently serve. To the extent practicable, all officials may be accommodated in the same department they presently serve or a related department. Rank, seniority & salary may be protected unless there are strong reasons for not doing so. Retrenchment may be avoided unless absolutely essential. Where retrenchment becomes unavoidable, the first choice may fall on individuals guilty of violating the applicable rules directly or indirectly.

Temporary & outsourced staff shall be allocated on the basis of the local cadre they actually belong to irrespective of where they presently serve. There can however be no guarantees about their continuation in service. The appropriate successor state shall decide each such case.

As a compassionate measure, spouse, children & wards of individuals assigned to a particular region/zone may be accorded local status waiving domicile requirements.

It is expected that Telangana may fall short of the required staffing. These may be filled in by absorbing temporary & outsourced staff allocated to the state. If the shortage persists, these may be filled in by direct recruitment.

To enable the smooth functioning of the committee, all public servants in both the states as well as pensioners may be required to cooperate fully with the committee. Refusal or failure to cooperate with the committee or misleading/obstructing the functioning in any manner shall attract instant disciplinary action.

ToR10

Look into the issues arising out of the presidential order issued under article 371-D of the constitution consequent to the bifurcation

Article 371-D is essentially of an enabling nature and does not have any effect unless the relevant presidential orders are issued. The provisions relating to public employment, for example, remained in abeyance for a full fifteen months. It may be noted the orders are of an executive nature and therefore can be amended (or withdrawn) without any legislative process.

Articles 3 & 4 confer wide ranging powers to the central government. This was reiterated in several cases including Mangal Singh & Anr v. Union of India, 1966, Maharashtra v. Narayan Shamrao Puranik and Ors, 1982 and Mullaperiyar Environmental Protection Forum v. Union of India & Ors, 2006.

It may be best if the two popularly elected state Governments decide on whether they would like the provisions of the article in their respective states. It is therefore a good idea to rescind the appropriate presidential orders. These may be substituted by a single order covering the following:

·         Constituting on HPESC

·         Protection of existing service category for a period of two years or a decision by HPESC, whichever is earlier

·         Protection of existing educational benefit for a period of two years or completion of Post Graduate education, whichever is later, subject to a maximum period of five years

Appropriate presidential orders may be released on the recommendation of the two state Governments after the elections.

ToR11

Examine any other matter that may arise on account of the bifurcation of the state of Andhra Pradesh and make suitable recommendations

Any other matter that may arise may be settled in accordance with existing constitutional provisions, applicable due process or precedent in that order.

Conclusions

Article 3 requires that the present state legislature be provided an opportunity "for expressing its views thereon within such period as may be specified in the reference or within such further period as the President may allow and the period so specified or allowed has expired".

This may be achieved by forwarding the draft reorganization act to AP assembly. In order to expedite the matter, it is suggested that the assembly be provided a period of 5 (five) working days from November 25-29 (both days inclusive). A special assembly session may be called for the purpose.

As article 3 does not require any resolution to be passed or voted, this may be dispensed with. The transcript of the assembly proceedings may be forwarded by the speaker as proof of compliance with the procedural requirement.

The reorganization bill may be tabled on the opening day the winter session of the parliament. Accordingly Telangana can be formed with January 1, 2014 as the appointed day. This would be a welcome Christmas/New Year/Pongal gift to the people of India especially those from Telangana and Seemandhra.

In parting, I would like to thank the GoM for providing an opportunity to Indian citizens to express their views.

Thank you,

Jai Gottimukkala