Hyderabad: Andhra Pradesh Inc said that Andhra Pradesh's bifurcation into two states has removed the ambiguity which prevailed across the region so far. The transition from one state to two states is expected to happen smoothly, as the government appears to have been working on the issue for a long time, Chairman of the Confederation of Indian Industries, Andhra Pradesh, B Ashok Reddy said.
After dithering for nearly four years, the Congress and the UPA coalition unanimously today endorsed the creation of a separate Telangana state from Andhra Pradesh. "We cannot tell about the impact immediately, but the ambiguity that was there so far has gone. As committees have been formed for some issues, I don't think there would be any problems during the transition," Reddy said.
Dr Reddy's Laboratories President (Global Generics) Abhijit Mukherjee said that there will not be any issues for business with regard to the bifurcation of Andhra Pradesh. Pegasystems India Vice President and Managing Director Suman Reddy said that while he cannot assess the long-term impact of the decision on Telangana right now, the immediate impact in terms of ending uncertainty surrounding the matter should bring back stability in Hyderabad's business environment.
"Growth and expansion from the perspective of infotech MNCs investing in the state had been stalled or was relatively slow due to this issue which hopefully will resume after the decision is announced," Suman Reddy said. Andhra Pradesh Real Estate Developers' Association and Primus Developers President Dasarath Reddy said that there may be a positive impact on real estate prices in Hyderabad due to the formation of Telangana. "As there was suspense all these days, investment flow into Hyderabad was not up to the mark. With a clear picture emerging now, a positive sentiment will prevail and as real estate prices are cheaper in the city, activity will pick up now," Reddy said.
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