Merger of Telangana and Andhra

In December 1953, Prime Minister Jawaharlal Nehru appointed the States
Reorganization Commission to prepare for the creation of states on
linguistic lines. This was headed by Justice Fazal Ali and the
commission itself was also known as the Fazal Ali Commission. The
efforts of this commission were overseen by Govind Ballabh Pant, who
served as Home Minister from December 1954. The commission created a
report in 1955 recommending the reorganisation of India's states.

The States Reorganization Commission (SRC) was not in favour of
merging the Telangana region with the then Andhra state. Para 382 of
States Reorganization Commission Report (SRC) said "opinion in Andhra
is overwhelmingly in favour of the larger unit, public opinion in
Telangana has still to crystallize itself. Important leaders of public
opinion in Andhra themselves seem to appreciate that the unification
of Telangana with Andhra, though desirable, should be based on a
voluntary and willing association of the people and that it is
primarily for the people of Telangana to take a decision about their
future". The concerns of Telanganas were manifold . The region had a
less developed economy than Andhra, but with a larger revenue base
(mostly because it taxed rather than prohibited alcoholic beverages),
which Telanganas feared might be diverted for use in Andhra. They also
feared that planned dam projects on the Krishna and Godavari rivers
would not benefit Telangana proportionately even though Telanganas
controlled the headwaters of the rivers. Telanganas feared too that
the people of Andhra would have the advantage in jobs, particularly in
government and education. Para 386 of States Reorganization Commission
Report (SRC) said "After taking all these factors into consideration
we have come to the conclusions that it will be in the interests of
Andhra as well as Telangana area is to constitute into a separate
State, which may be known as the Hyderabad State with provision for
its unification with Andhra after the general elections likely to be
held in or about 1961 if by a two thirds majority the legislature of
the residency Hyderabad State expresses itself in favor of such
unification."

The central government decided to ignore the SRC recommendations and
established unified Andhra Pradesh on November 1, 1956. However, a
"Gentlemen's agreement" provided reassurances to the Telangana people
as well to Andhra people in terms of power sharing as well as
administrative domicile rules and distribution of expenses of various
regions. This agreement is known as Gentlemen's agreement of Andhra
Pradesh (1956).