Industry jittery in Hyderabad
With the jury still out on Telangana, industry in Hyderabad is anxious to see that the image of the city and the state as major investment destinations is not affected by the political turbulence.india Updated: Jan 08, 2011 01:15 IST
With the jury still out on Telangana, industry in Hyderabad is anxious to see that the image of the city and the state as major investment destinations is not affected by the political turbulence.
“The ambiguity is killing growth here. Let the government and the parties sit over it for another two or three months. But there should be an end to the impasse. Otherwise, investment, which are now trickling in, could stop,” said Y Harishchandra Prasad, president, Infrastructure and Logistics Federation of India.
The Srikrishna Committee on Telangana pinpoints the concern. “To grow, Hyderabad cannot afford a continued climate of uncertainty. Its future now is vitally dependent on the ability of decision-makers to work out arrangements for effective ... governance for its all-round growth and development.”
Businesspersons from the Andhra region want good governance, whether state stays intact or not.
“Personally, I would like the state intact. But a better investment avenue is better than one in constant crisis,” the chairperson of a medium-level IT firm said.
Harish Chandra Prasad, former president of the Andhra Pradesh chapter of the Confederation of Indian Industry, said: “Industry is least bothered as to who rules Hyderabad as long as there is a conducive environment for businesses.”
Nityananda Reddy, president of the Bulk Drug Manufacturers Association and managing director of Aurobindo Pharma, said: “We want this uncertainty to go. The whole world is open for investors. Once lost, it is an uphill task to regain customer confidence, particularly in an export sectors such as ours.”
The annual export of pharma products exports from Hyderabad is more than Rs 10,000 crore. More than 200 of the 255 pharma units in Andhra are in or near Hyderabad, some of them being Indian Immunologicals, Dr Reddy’s and Shanta Biotech.
The government admits to a negative impact. “Investment intentions increased this year in AP, but the potential could have been great. At the same time, the situation led several new units to move away,” a senior industries official said.