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With bandhs becoming the order of the day and violence on the streets bringing business and life to a standstill, the sentiments of Separate state for Telangana seem to take its toll on this city, Hyderabad, once much favoured destination for all the foreign investments. To cite a recent happening – on wednesday, India’s leading trade and industry body – Confederation of Indian Industry (CII) – announced the decisiont to move its prestigious annual partnership summit to be held in January, from Hyderabad to Chennai. It took years of efforts to bring the summit to Hyderabad. But events of days were enough to change the venue.
The bandhs and violence are bad for business. Various IT and Pharma companies are enquiring about the situation. The possibility of any new investments coming to Hyderabad till the environment is conducive, is ruled out. Shekhar Agarwal, Vice-presicent of Federation of Andhra Pradesh Chamber of Commerce and Industry (FAPCCI), feels that MNCs and domestic giants are developing cold feet over future investments in the city. The same sentiments are expressed by the local entrepreneurs too.
A senior official of AP government said, “In the last week at least two proposals for units near Hyderabd have been with drawn. They will now be set up in Chennai.“
“Recent attacks on HSBC’s BPO centre in Vizag startled the gloabal IT/ITeS giants. Many of them made Hyderabad their base. Their patience is wearing thin. The situation has to come under control before it becomes to late to repair the damage done to the state’s image.
Otherwise Hyderabad’s loss could soon be Bangalore or Chennai’s gain,” warns Som Mittal, Nasscom president. This is what political critics have been complaining about Chidambaram and Veerappa Moily.
It is only economic activity and business that bring prosperity to any city or state. But today there is anxiety among investors. Many of them run 24×7 operations. “The continued bandhs and violence interrupt and hit the work of IT/ITeS. Worrisome factor is that many of these MNCs, who put Hyderabad on the global map, may soon beat a hasty retreat. They will exit quietly and Hyderabad will be the biggest loser,”says the top gun of a leading IT company.
Biotech and Pharma companies also are alarmed at the way things are going. The trucks carrying the raw materials and goods are being stopped. With the bandhs being announced on every otherday, running the business is becoming a nightmare. Even the hotel industry is bearing the blunt of the situation. Most of the nearly 15 hotels in the 3-5star category have seen occupancies crash by around 50% in the city. Many conferences, parties, and rooms were cancelled. Even the plans of expansions plans of 3000 romms over next couple of years are shelved by 8-odd hotels. Clearly all these events indicate that Hyderabad is losing its brand for investments and this could be the gain of some other city
