1.The expenditure of the central and general administration of the State should be borne proportionately by the two regions and the balance of income from Telengana should be reserved for expenditure on the development of Telengana area. This arrangement will be reviewed after five years and can be continued for another five years if the Telengana members of the Assembly so desire
2. Prohibition in Telengana should be implemented in the manner decided upon by the Assembly members of Telengana.
3. The existing educational facilities in Telengana should be secured to the students of Telengana and further improved. Admission to the Colleges including technical institutions in the Telengana area should be restricted to the students of Telengana, or the latter should have admission to the extent of one- third of the total admissions in the entire State, whichever course is advantageous to Telengana students.
4. Retrenchment of services should be proportionate from both regions if it becomes inevitable due to integration.
5. Future recruitment to services will be on the basis of population from both regions.
6. The position of Urdu in the administrative and judicial structure existing at present in the Telengana area may continue for five years , when the position may be reviewed by the Regional Council. So far(as) recruitment to services is concerned, knowledge of Telugu should no be insisted upon at the time of recruitment but they should be required to pass a prescribed Telugu test in two years after appointment
7. Some kind of domicile rule, e.g., residence for 12 years should be provided in order to assure the prescribed proportion to recruitment of services for Telengana area.
8.. Sales of agricultural lands in Telengana area (is) to be controlled by the Regional Council.
9. A Regional Council will be established for the Telengana area with a view to secure its all- round development in accordance with its needs and requirements.
10. The Regional Council will consist of 20 members as follows: 9 members of the Assembly representing each district of Telengana to be elected by the Assembly members of the Telengana districts separately, 6 members of the Assembly or the Parliament elected by the Telengana representatives of the Assembly , 5 members from outside the Assembly to be elected by the Telengana members of the Assembly. All ministers from Telengana area will be (its) members.
11. a. The Regional Council will be a statutory body empowered to deal with and decide about matters mentioned above and those relating to planning and development, irrigation and other projects, industrial development within the general plan and recruitment to services in so far as they relate to Telengana area. If there is difference of opinion between the views of the Regional Council and the Government of State, a reference may be made to the Government of India for final decision. b. Unless revised earlier by agreement, this arrangement will be reviewed at the end of ten years. 12.The Cabinet will consist of members in proportion of 60 to 40 per cent for Andhra and Telengana respectively. Out of the 40 per cent Telengana Ministers one will be a Muslim from Telengana.
13. If the Chief Minister is from Andhra, the Deputy Chief Minister will be from Telengana and vice- versa. Two out of the following portfolios will be assigned to Ministers from Telengana : a. Home; b. Finance; c. Revenue; d. Planning & Development; and e. Commerce & Industry.
14. The Hyderabad Pradesh Congress Committee President desired that the Pradesh Congress Committee should be separated from Telengana upto the end of 1962. Andhra Provincial Congress Committee President has no objection.
The above agreement was arrived at on February 20, 1956.
It was signed by (1) B. Gopala Reddy, Chief Minister of Andhra; (2) N. Sanjiva Reddy, Deputy Chief Minister of Andhra; (3) G. Latchanna, Minister in the Andhra Cabinet & Leader of the Krishikar Lok Party – a constituent of the United Congress Front which contested the Andhra elections (1955) and formed the Ministry; (4) A. Satyanarayana Raju, President, Andhra Provincial Congress Committee; (5) B.Rama Krishna Rao, Chief Minister, Hyderabad; (6) K.V.Ranga Reddy, Minister, Hyderabad; (7) Dr. M. Chenna Reddy, Minister, Hyderabad; and (8) J.V. Narsinga Rao, President, Hyderabad Provincial Congress Committee.
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