Nizam,BRITISH,story of Circar Districts

Hostilities recommenced in India between the French and the English in AD.1758 on the outbreak of Seven Years War in Europe in A.D.1756. As a result, the French lost their power in India and consequently it also lost influence at Hyderabad. In A.D.1762 Nizam Ali Khan dislodged Salabat Jung and proclaimed himself as Nizam.

Hyderabad came into focus again when Nizam Ali Khan (Nizam II) in A.D.1763 shifted the capital of the Deccan from Aurangabad to Hyderabad. Such a move helped rapid economic growth and expansion of the city, resulting in its importance and prosperity.

Between A.D.1766 and A.D.1800, Nizam's sovereignty had declined considerably and the British gained their authority over the Nizams by compelling the latter to sign six treaties.
In A.D.1766, the Nizam signed a treaty with the British, whereby in return for the Northern Circars, the British agreed to furnish Nizam Ali Khan with a subsidiary force as and when required and to pay Rs.9 lakhs per annum when the assistance of the troops was not required in lieu of Northern Circars to be ceded to them. In A.D.1768 he signed another treaty conferring the Northern Circars to the British and the payment by the British was reduced to Rs.7 lakhs. According to another treaty, he surrendered the Guntur circar in A.D.1788. In A.D.1779, the Nizam conspired with Hyder Ali of Mysore and the Peshwa of the Marathas to drive away the English. When they learnt about his designs, the English marched against the Nizam who had to sue for peace agreeing to the presence of an English Resident along with army, artillery and cavalry at Hyderabad