New Delhi:  The Centre today took the first significant step towards creation of a separate Telangana state from out of Andhra Pradesh and decided that Hyderabad will be the joint capital of the two states for 10 years.  

Over two months after the Congress Working Committee put its seal of approval, the Union Cabinet approved the proposal of the Home Ministry for creation of the 29th state and decided to set up a Group of Ministers (GoM) to work out modalities.

“The Cabinet has given its approval for the creation of a new state of Telangana,” Home Minister Sushilkumar Shinde told reporters after the meeting that lasted more than two hours.  

He said it was decided that Hyderabad will be the common capital of the two bifurcated states for 10 years.  

After the creation of the new state, the security and guarantees including fundamental rights of the people of coastal Andhra, Rayalaseema and Telangana will be ensured, he said.

The Cabinet approved a GoM that will go into the issue of a special financial disbursement that may be required from the central government for the residuary state of Andhra Pradesh, for building its capital and to cater to special needs of the backward regions.

The new state will have a geographical area of 10 of the 23 districts of undivided Andhra Pradesh.

Today’s decision brings to fruition the announcement made by the then Home Minister P Chidambaram on December 9, 2009 for creation of Telangana.