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Jul 31, 2013 at 11:18pm IST

Andhra Pradesh split: Will investment take a hit in Hyderabad?

Hyderabad: With Andhra Pradesh headed for a divide, investors from Seemandhra are worried about the fate of Hyderabad which will be the joint capital of Telangana and Andhra Pradesh for 10 years. Over the years, Hyderabad has established its image as one of India's top professional cities. It is India's second largest hub for IT and Bio Technology and is a fore runner in pharmacy and other financial services.

Even before the IT revolution in Hyderabad, it was the favoured destination for investment from other regions of the state. Now, with ambiguity over its state of affairs, speculation about its future has left many people worried. "Universities and all Central government organisations are in Hyderabad. Other regions still do not have the resources right now," said Naveen K, an IT professional in Hyderabad.

Hyderabad had initially gained popularity because of huge investments in the city. Industrialists believe that the Telangana issue has hampered the growth and investment in the region. About 80 per cent of Andhra Pradesh's industries, built mostly by people from Seemandhra, are located in and around Hyderabad. It is for this reason that the anti-Telangana protesters are opposed to Hyderabad being taken away.

The distribution of resources is the key to the smooth operation of Hyderabad as a joint capital between Andhra Pradesh and Telangana. "The policy of power and water sharing will have to be taken very seriously," said FAPCCI chairman Anil Reddy.

Apart from being the IT hub, the Telugu cinema is also centered in Hyderabad which is controlled by those from outside Telangana in Seemandhra. The industry accounts for Rs 700-800 crore of revenue, with majority of the filmmakers belonging to Andhra Pradesh.

All hopes are now pinned that Hyderabad will remain the capital of both Telangana and Andhra Pradesh for much longer than the 10 years promised by the Congress.