What’s Telangana stake in hyd?

Hyderabad has been the apple of discord between Telangana and Andhra Pradesh just for nothing

Albeit, his association in building the 400 years old Nizam city into a software conglomerate is undoubted, the AP Chief Minister Chandrababu Naidu, has finally come to terms by announcing, of course, a temporary Capital for residuary state, Vijayawada.

Keeping aside the controversies and conflicts, a new beginning has started for both the states, and we will see the result in the months and years to come. While Hyderabad is to be rebranded depicting Telangana flavour, the Andhra Pradesh needs to build a Capital city for itself in tune with the aspirations of the people of coastal and rayalaseema regions.

The Hyderabad city is only advantage to Telangana state, as the state is landlocked with limited exposure to irrigation, mineral and granite wealth. Compared to Andhra Pradesh, which offers a variety of big towns (still no town reached to the level of a city) includes: Vijayawada, Visakhapatnam, Tirupati, Kakinada and Anantapur.

It is know that engine is fired for Hyderabad, but, is waiting for a driver. It is for the government of the day to bring in a talented driver in order to realise the development for entire state, and to be fair to both Hyderabad - one of India's largest and most endowed cities - and the rest of Telangana.

It is true that a sensitive politician like K Chandrasekhara Rao is trying to woo the industrial captains by offering land, but immediately he reveals the problem of power supply and adds that they need to wait, at least for three years. The wise industrialists, they are, deciding to wait for three years, till power supply is assured, hence there is no flow of investment.

Another trouble (may be political strategy) would be his standoff with local industrialists coastal and rayalaseema districts, who have shifted their bases during undivided Andhra Pradesh. In fact, Telangana always gained advantage with Hyderabad and now with its rich institutions like international airport, IT corridors, Genome Velley, pharma majors, research institutions, education, healthcare and many more unique projects. As all eggs are in one pot, is posing trouble to TRS government.

TRS government wants to keep AP government away from ‘golden goose’ Hyderabad. And Central government wants to control the city through its representative, The Governor.

If Hyderabad goes into Central government’s hands, Telangana may have to face a big challenge, as it cannot use Hyderabad as its ‘trump card’ for investments. Hence, it is time for the KCR and his government not to confront but cajole the Union government to arrive a meaningful understanding after brushing aside all the doubts in the minds of ‘Delhi Durbar’.

Only then, it can utilise the land around the city in Ranga Reddy, Medak, Nalgonda and Mahboobnagar for the all round development of the state and can fulfill the aspirations of the young, which he promised during elections. For instance, going by the numbers, between 1991-2010, Telangana and Hyderabad attracted about Rs 6,490 crore foreign investment and it is no doubt that the clear financial advantage for Telangana comes due to the inclusion of Hyderabad.

And in the case of tax collections also, Telangana, excluding Hyderabad accounted for just 7.6 per cent of sales tax collections. Rayalaseema accounted for 2.9 per cent, Coastal Andhra for 14.3 per cent, while Hyderabad alone accounted for 75.2 per cent and 83 per cent with Telangana.

On GDP count also, from 1994 to 2001, AP grew by 36 per cent, while Telangana GDP grew by 38 per cent and including Hyderabad it was 43 per cent. Post 2001, till 2008 the AP GDP grew by 54 per cent, Telangana (without Hyderabad) GDP reaches 60 per cent.

Thanks to the vision of Telangana Chief Minister Rao is hell bet on making the newly carved out Telangana state as a haven for industries in the country. He promised the best policies, a single window system for clearances, tax concessions and land for industries.

It is highly appreciable that Rao is managing the government with less or no experience cabinet colleagues with ease. He is bold and prompt in revealing the deficiencies and promises to deliver industry-friendly Telangana government. He kept industry and power portfolios under him clearly show his seriousness about industrialisation and commitment.

Not to underestimate his role, Rao could offer land to big guns like Coca Cola, Wipro etc, aims at enhancing the brand image of the state. He personally monitors and processes the investors demand by taking flow from submission to offer letter in one go. But, he needs to keep Hyderabad under his control to take advantage.

The BJP led NDA Government has taken a balanced stand and a touch me not approach by asking both the CMs to sort out contentious issues across negotiating table and to come to Center and go to courts only if such efforts fail.

With the realisation of the hard truth that both states cannot co-exist without aiding each others, Nara Chandrababu Naidu and K Chandrasekhar Rao are expected to meet in the august presence of the Governor, a first-step towards find a workable solution for mutual growth and economic progress.