Ad Here  
Why the Congress won in Karnataka More government apps Competing for good: Tale of two states Winds of change... Illegal mining of sand Divide & Prosper Bus services hit A giant push for millets It indeed is attractive for investments Kochi Metro Rail Project Green crimes galore An industrious idea Global Investors Meet Post Poned Hype on Hyperloop When business flocks to MP... State under siege Bringing magic of Rajasthan alive Strike over salary hike Homestays, a budding tourism industry Pioneering education model Inter-State boundary Power for all KCR’s I-day bonanza Come to Tamil Nadu where the action is... ‘E’ for enterprise Enticing pest traps Nod to cow slaughter bill CII to set up tourism bureaus States - Odisha Info-Park, more space Infra boost to the new capital Benevolent businessthan... Global meets galore States - Kerala Waste disposal model TN can leverage NLC’s strengths... Doubling production and tripling farmers’ income... With agriculture at its heart... Launch of ins vikrant, India’s first indigenous aircraft carrier States Roundup MOUs worth Rs.10.54 lakh crore signed All these happened in TN… KNPP with the grid Time to wake up Technology has raised the bar... Reducing carbon footprint... Bifurcation yet to end water wars Leaky old lorries, mini cabs for techies... Miners asked to pay more Oh, la la. AP in better shape Land acquisition policy is ahead of national policy... Fanciful Rao and tech-savvy Naidu Of development and welfare A year of Telangana Monsoon fury Development depends on land availability... Deputy Collector Sindhu! Infrastructure to the FORE City of foaming lakes and fire Lingayats get a reminder: it’s poll time Vedanta to close Lanjigarh refinery Tasks for the new government Stirring the political cauldron A neta at it again! State Forward Land scams rock AP & TS ODISHA TN to suffer serious loss It’s Karnataka chalo for Amit Shah? Bhubaneswar IIT cries for completion State of the States Flurry of collaborations inked by AP Mango Diplomacy KTR releases Annual Report TN to suffer serious loss Thalaivaa Promise of a productive year A blueprint for the future Municipal Elections Industrial corridors to boost economy MCL has a taste of judicial activism! SIPB clears big proposals Wouldn’t the Mahatma like clean restrooms in our cities! Enchanting and enterprising Tamil Nadu
Divide & Prosper
It has been a year of high drama for Telangana and Andhra Pradesh. The bifurcation has been as complicated as the separation of conjoined twins.

It has been a year of high drama for Telangana and Andhra Pradesh. The bifurcation has been as complicated as the separation of conjoined twins. There has been a lot of noise about various issues: sharing of resources, allocation of central funds and the creation of a new capital.

The bone of contention between both parties was Hyderabad, which will be the joint capital for the next ten years. Everything - the departments of the governments the key national institutes in the state and even the headquarters of many Andhra enterprises are in Hyderabad. The taxes they pay, the people they hire, the assets they buy - everything has been Hyderabad specific. The decision makers are to blame, as they’ve put “all their eggs in one basket,” even as other parts of Telangana have no investments, no institutions and no industries of repute.

“The concerns are valid, the fears aren’t’ is what both the chief ministers have stressed.  AP needs a lot of financial aid, with its cash cow and a city that contributed the most in terms of revenue - Hyderabad becoming the heart of Telangana. Both Naidu and Rao have ambitious plans, unveiling budgets in excess of lakh crore each in the recently concluded budget sessions. It should be noted that the previous year budget of the combined AP state was lakh crore. This is a gamble, and an ambitious one at that, with resources and revenues going down by 50 per cent while the budgetary expenditure almost doubling for both the states. It is to be noted that the Central government which drafted the AP Reorganisation Bill promising economic benefits and support during the previous UPA regime is no more. The new government at the Centre, though vociferous in its support to the states, hasn’t really done much in this regard.


Hopeful and awaiting change...

Telangana has its set of issues, though it is a benefactor in a way due to its relative economic stability vis-a-vis AP. The region barring Hyderabad, has been neglected from the time of the Nizams. With a dry topography and very few industries, there isn’t much of commerce and industry in the districts. The people who’ve voted the Telangana Rashtra Samithi to power wish to reap the benefits of bifurcation. They are hopeful and awaiting change: employment, better basic amenities, good infrastructure and a sustainable lifestyle.

 The people of Andhra Pradesh too, are hopeful and expecting better development. For years, the leadership has been sitting and concentrating on Hyderabad while viable centres of commerce - Visakhapatnam, Vijayawada and Tirupati -have been more or less left to fend for themselves. They now expect the government to concentrate on these cities now closer to the new capital.

 The troubles of Hyderabadis is a different story all together, with two chief ministers and two secretariats, a whole lot of ministers and VVIPs, the roads are often cordoned and government offices are jumbled. The logistics are confusing and expensive. With two states sharing offices, imagine the situation where the Heads of Departments of one state sit in another state.

Both the chief ministers have been on overdrive, with their ambitious plans for development and some noteworthy growth-decisions like the New Industrial Policy of Telangana which promises world-class services and a single window online clearance for new enterprises. The AP government too, is taking drastic steps to entice investors with its Start AP conclave for budding entrepreneurs held in Vijayawada recently. The establishment is enthusiastic and there is a positive competition between the governments, their officers and also the political parties to showcase the best of their respective states to bring investments. This is a welcome change that can bridge the deficit and aid in the development of both the regions. It has almost been a year since the bifurcation and with things settling down and the establishment finding its feet, this division might just be the pill for overall inclusive development of the region.

Author :
Reported On :
Sector :
Shoulder :
IE, the business magazine from south was launched in 1968 and pioneered business journalism in south. Through the 45 years IE has been focusing on well-presented and well-researched articles. When giants in the industry stumbled to keep pace with the digital revolution, IE stayed affixed embracing technology.
Read more
Economist Communications Ltd is committed to ensuring that your privacy is protected.
Read more
You agree that your use of this Website and the purchase of the magazine will be governed by these terms and conditions.
Read more
S-15, Industrial Estate,
Chennai - 600 032.
PHONE: +91 44 22501236