Industry hopes Telangana resolution will end uncertainty

India is all set to get its 29th state. The Congress Working Committee, the highest decision-making body of the party, at its meeting on Tuesday evening, passed a resolution in favour of a division of Andhra Pradesh to create a new state of Telangana. A unanimous decision had been taken earlier in the day by the UPA. "Hyderabad will be the shared capital of Andhra Pradesh and Telangana for 10 years," announced Congress spokesperson Ajay Maken at a press conference after the event.

The resolution Maken read out said the committee would request the central government to take steps to form a separate state of Telangana and to institute mechanisms to address the concerns of the people of the regions of coastal Andhra and Rayalaseema (the other two important regions of Andhra Pradesh) on matters relating to sharing of river waters, generation and distribution of electricity, safety and security. It also called for declaring Hyderabad "a common capital of both the states for a period of 10 years after the formation of Telangana." It also sought assistance in the building of a new capital for the rest of Andhra Pradesh.  
 
While the actual formation of Telangana is a long way off as there are still a lot of administrative and legal processes that need to be gone through, a political decision on its formation has been taken. There are sections of leaders from Rayalaseema and coastal Andhra who are unhappy about the development, and it needs to be seen how the Congress government is going to win them over. However, industry in the state seems to be hoping that this will at least end the uncertainty in the region. "People will hopefully get on with their business now," says Devendra Surana, ex-president of the Federation of Andhra Pradesh Chambers of Commerce and Industry (FAPCCI).

Echoing him, B V R Mohan Reddy, Chairman and Managing Director of Infotech Enterprises, a leading IT company headquartered in Hyderabad, told Business Today: "I am pleased that a decision has been taken that should end the uncertainty. The separation issue has been discussed in the state for over 50 years now and especially after December 2009, I think there have been fairly serious challenges to the image of Hyderabad and its brand, leading to a slowdown." He, however, does not rule out more challenges in future. "There are the challenges of sharing of river waters, sharing electricity, sharing finances and people will have to exhibit statesmanship and get these resolved," he added. But what does the creation of the 29th state of India mean for industry? "It will create one more hub without Andhra losing out. Andhra already has its four airports, a long coastline and the agri-base and now there will be one more region that will get a boost in terms of focus, investments and infrastructure," he said.