Friday, March 5, 2010

A Collateral Loss

Our company had to roll out a plan. It had decided to implement it in South Zone first, because of its favorable past experiences. Hyderabad was to be the hub. But by the time the roll out date came nearby, Telangana issue had blown up the political space and Hyderabad and AP was burning in anger and anticipation. The company decided to deter the plan and chose West Region instead. The same story is being repeated for many other companies in all sectors and businesses.

The loss to Andhra Pradesh due to the political crisis has been immense. The losses would amount in thousands of crores, I guess. And the agitation in AP has even cost the other Southern Indian states in general as tourists, companies and investments would choose other safer destinations like West or North.

I think it would be naïve to blame TRS or any particular separatist group for the Andhra crisis. The main culprit in the case is the irresponsible handling of the issue by the central leadership of UPA/Congress. It’s also amusing to note that the members of Nehru dynasty – Rahul and Sonia Gandhi have hardly taken any clear stand on this issue; thereby saving themselves from any possible challenges or issues of ideology. It’s a situation like Nero playing the fiddle while Rome burned.

Whether Telangana becomes a separate state or not, Andhra Pradesh has already lost out heavily. Until the political crisis is resolved, the investor confidence in the state would remain negative. Given the manner in which the central leadership has handled this case, and given the attitude of the political powers in the Center, the future of Andhra Pradesh is muted.

- Rahul

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