Telangana Chief Minister KCR’s representation to 14th Finance Commission urging for huge funds has revealed the other side of the coin. He admits that over 3,000 dealers have shifted to AP post bifurcation and proportionately there is fall in revenue sources. He stressed the Commission to grant special status to Telangana state also, otherwise this flow may continue into AP for the same reasons. Leading two wheeler manufacturer-Hero Moto Corp, which initially planned to set-up its first ever plant down the south in Telangana, later moves to AP because it can enjoy all the tax benefits there when the special status is accorded to state.

Telangana government fears that many industries and business houses may also follow Hero’s path in future, if not accorded special status to Telangana state also. Its apprehensions are genuine, but there are several other factors like prevailing power crisis, its poor relations with Centre and neighboring state, its aggressive nature, the controversies erupted in the Hyderabad metro rail project, Chandrababu Naidu’s industrial friendly nature etc. that make the industrialists and business houses think about shifting into AP.

So, Telangana government has to take remedial actions to attract fresh investments and also to keep the existing industries and business houses cling to Telangana state. For example, Telugu Film Industry, which makes Hyderabad as home and quite comfortable there, is now thinking to shift to Vizag or Nellore. Telangana government should find what is going wrong and how to rectify it.