Telangana to lose the race of investments to AP

On Tuesday, Telangana Power Corporation has announced that the industries in the state will have to go for 2 days of Powercut besides the normal Sunday holiday. This announcement is the result of the heavy power crisis the state has come to after the bifurcation. Majority of the power generating stations have gone to AP leaving Telangana with limited hydel power dependence which will again only work when there are good rains. The state can not even purchase power from other states due to the lack of proper grid or availability of power in the market.

This problem of Telangana even is eating away the advantage of having a well heeled infrastructure in Hyderabad. There are several manufacturing units in and around Hyderabad which are heavily dependent of power. In order to make up to their production targets and retain their customers, these industries are currently operating on Diesel operated generators which is increasing cost of their production. According to a recent study, several manufacturing units are nearing their closure date due to these losses.

While the industry does not expect the 100 days plus old government to solve the problem overnight, they expect steps in the direct to redress the problem. But Chief Minister K Chandra Sekhar Rao is continuously telling people that nothing can be done for the next 3-4 years which is creating fear in the industrialists. Moreover, the investors are also not happy with the government taking head on head with the Center while it has to lobby with them like the other Telugu state, Andhra Pradesh. Several experts opine that being a power surplus state, AP can very soon catch up with Telangana on infrastructure and end up having greater advantages in attracting investments .