While seeking more clarity on sharing of water, power and taxes etc, the industry umbrella body CII said the new capital of Seemandhra could become another bone of contention going forward.
With Lok Sabha passing the AP State Reorganisation Bill for the creation of separate Telangana, industry in the State feels that bifurcation is good for both Telangana and Seemandhra regions. While the Telangana region will be benefited in the form of right valuation of the physical assets owing to political stability, Seemandhra will get the much needed push in development through new infrastructure according to industry heads.
The CMD of Infotech Enterprises Limited, B.V.R. Mohan Reddy said the decision works out well for both Telangana and Seemandhra regions. “Given the indications, there will be a lot of physical and social infrastructure development in Seemandhra region in future which in turn leads to industrial development. At the same time the political stability will kick start growth which was stalled in and around Hyderabad,” he said. He, however, said that it is disappointing to note that Telugu speaking people are divided and Telugu pride is hurt.
Good business opportunity
The new development apparently will be a good business opportunity for banks. “The expected new capital, surrounding infrastructure and other developments in the Seemandhra region will be a good opportunity for new business. Definitely it spells good business in the infrastructure, construction and other related areas,” said Mr. Bhagawantha Rao, MD, State Bank of Hyderabad.
The real estate segment too eyes better scenario and opportunities out of the development. The undervalued assets in the Telangana region, especially in Hyderabad, will be rightly priced now according to the Confederation of Real Estate Developers' Associations of India (CREDAI). “The properties here are valued at 60 per cent lesser compared to the ones in Chennai. The development leads to correction in the market in the coming two years,” said Mr. Shekar Reddy, CREDAI-National.
However, it all depends on how the funds are pumped by the Centre for the creation of new Seemandhra capital city, creation of social infrastructure and connectivity of the regions with the external world, the industry opines.
Bone of contention
While seeking more clarity on sharing of water, power and taxes etc, the industry umbrella body CII said the new capital of Seemandhra could become another bone of contention going forward. “After having Hyderabad as capital city for 10 years, Seemandhra’s capital may again become the bone of contention between the people of Rayalaseema and Andhra which may impact the growth prospects of the new state. In addition, when the new state is formed, the distribution of different industries should be based on the availability of resources and talent,” said Mr. B. Ashok Reddy, chairman, CII, AP.