http://www.thehindubusinessline.com/2009/12/25/stories/2009122553310100.htm Telangana issue mars AP's business climate. Hotel industry saw a big drop in occupancy due to cancellations by tourists and events, the IT sector has been hit by low attendance. There is also the spectre of IT units shifting to competing cities. The CII has decided to move the venue of its Partnership Summit slated for January to Chennai.
Hyderabad, the fifth largest city in the country is home to some 1000 IT companies, besides housing some top biotech, infrastructure and Pharma companies.
India's longest flyover with a length of 11.66 km is in Hyderabad
http://timesofindia.indiatimes.com/india/All-ministers-from-Telangana-region-quit-over-statehood-issue/articleshow/5377948.cms All ministers from Telangana region quit over statehood issue
Hyderabad real estate will be severely hampered with the recent events. Irrespective of whether a separate Telangana state is formed or not, the negative sentiments will ensure that no fresh investments are made in Hyderabad as the investors will go in a wait and watch mode.
Major portion of infrastructure spend of the state government of Andhra Pradesh has been financed through real estate sales and a report indicate 27% Rs.120Billion in FY09 and it was 22% Rs.66Billion in FY08 and mainly the sales of land was from Hyderabad which would jeopardize state finance and major Infrastructure project would get delayed or postponed
Delay in payments has slowed down the execution of projects: The construction companies like IVRCL, Patel Engineering, HCC has around 20%-30% of order backlog is from irrigation segment and primarily from AP. AP government is currently facing the problem of weak financial status coupled with agitation for separate Telangana state which has delayed the payment for ongoing projects.
