Get over it quick, says corporate Andhra

Corporate Andhra wants a quick decision on Telangana which, it feels, will have little impact on prospects for doing business in the new state if at all it does happen.

However, in the case of a delayed decision, the repercussions could lead to a flight of capital from capital city Hyderabad to other destinations like Bangalore, pointed out a cross-section of businessmen from the state.

“I am not an advocate of splintering states but if it is inevitable then do it clean and fast,” said E Sudhir Reddy, chairman and managing director of Hyderabad-based infrastructure major IVRVL.

Echoing similar sentiments, L Madhusudan, chairman of Lanco Industries, said the creation of Telangana will  not make much difference  in the long run.

“I don’t think business will get out of Hyderabad as it has good infrastructure and is also a good market,” said Madhusudan, who is the brother of Member of Parliament from Vijayawada Lagadapati Rajagopal. The MP was among the first to tender his resignation on Thursday protesting the creation of Telangana.

But short-term hiccups, particularly for real estate prices and investment decisions, cannot be ruled out as people could rush to Bangalore and Chennai that are a good competition to Hyderabad. 

In case of continued violence, the first impact will be felt by the IT sector that has made Hyderabad its home next only to Bangalore.  

Moreover, there is an opinion that a new Telangana government may not focus on business and infrastructure development as its immediate plank would be on agrarian reform and poverty alleviation, felt some.