Business won’t be affected, says Andhra Pradesh Inc

AP Inc believes formation of a separate Telangana state will not hamper business prospects. But a delayed decision could lead to a flight of capital from Hyderabad to Bangalore and Chennai, which are a good competition for IT, BT and other infrastructure investments.

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

“However, I don’t see any impact on business in the region in case a new state is carved out,” he said, giving the example of Chhattisgarh which has seen ample development. “It is all a matter of good governance.”

L Madhusudan, chairman of Lanco Industries, said in the long term, the creation of a Telangana state would not make a difference to operating out of the twin cities.

“I don’t think business will go out of Hyderabad as it has good infrastructure and is also a good market,” the brother of Vijayawada MP Lagadapati Rajagopal, who was the first to resign on Thursday morning and set the anti-Telangana juggernaut rolling, said. 

Short-term hiccups, particularly for real estate prices and investment decisions, however, cannot be ruled out as people could rush to Bangalore and Chennai. 

In case of continued violence, the first impact would be felt by the IT sector which has made Hyderabad its home after Bangalore.