After its merger with India, Hyderabad state became a democratic state in 1952
and Burugula Ramakrishana Rao became its first elected Chief Minster. Andhra
region was separated from Madras Presidency in 1953 and Tanguturi Prakasham
became its Chief Minister. However, there was an active campaign to merge the
Telugu speaking regions into one. While the Andhra Assembly passed a unanimous
resolution favouring merger, a large number of Hyderabad State Assembly members
had serious reservations about the merger. They were worried that the more wealthy
and developed Coastal Andhra elite would dominate the future state, and that the
people of Telangana would lose control over the resources of their region without
gaining anything. They were also worried about educational and employment
opportunities for their youth as the coastal region had a larger number of English
educated youth. On the initiative of the Union Government, the leaders of both
sides met in Delhi and reached what was called “Gentlemen’s Agreement” on 20th
February 1956. The signatories to the agreement were Bezawada Gopala Reddy,
Neelam Sanjeeva Reddy, Gouthu Latchanna, Alluri Satyanarayana Raju from Andhra
and Burgula Ramakrishna Rao, Marri Chenna Reddy, J.V. Narsinga Rao and K.V.<>br> Ranga Reddy from Telangana. They basically agreed on 14 points. This paved the
way for the merger of the two states though conditional and subject to satisfactio
of Telangana people. Thus, the new state of Andhra Pradesh with its capital in
Hyderabad was formed. The most important points in the agreement were;

1. Expenditure on Adminstration was to be borne proportionately by the two regions and surplus revenue from Telangana region would be spent only for the development of Telangana.
2. The existing educational facilities in Telangana would be reserved for the students from the Telangana region only.
3. It was agreed to continue the Mulki rules under which only those with a minimum of 12 years of residence in Telangana were eligible for jobs and admission to educational institutions in Telangana.
4. It was agreed to set up a Regional Council, a statutary body consisting of 20 members from the Legislative Assembly to oversee the needs and development of Telangana.
5. Sale of agricultural land in Telangana would be controlled by the Regional Council
6. The Andhra Pradesh ministry will consist of 40 percent members from Telangana and 60 percent from Andhra.
7. If the Chief Minster was from Andhra, the Deputy Chief Minister would be from Telangana and vice versa.