Is investment moving out Hyderabad?
news Friday, October 03, 2014 - 05:30
The News Minute | September 22, 2014 | 10.11 pm IST The Telanagana government has for the first time admitted that it might be losing Hyderabad as an investment destination as businesses express concern over the unfavourable business environment. According to a report in The Economic Times, businesses are worried about the decline in the population of floating migrants who provide labour, another important concern is the poor power supply, which has caused stoppage of production several times. The Telangana Rashtra Samiti government has told the 14th Finance Commission that around 3,000 companies have moved out of Telangana and into Andhra Pradesh in the three months since the bifurcation. Chief minister K Chandrashekar Rao expressed concern over the status of the revenue earned from taxes once Hyderabad ceased to be the joint capital of the two states. The report quotes the CM as saying, "there will be erosion of tax base in the short-to-medium term" and that "despite the suitability of the state for location of industry , power shortage in the state is a major hurdle".