Congress govt’s hasty decisions rattling investors’ confidence in Telangana

The newly formed Congress government in Telangana is making a flurry of decisions that could potentially scare away investors from the state. In just one week after assuming power, the Congress party came up with hasty moves and resorted to regressive politics. Two major projects, namely the Pharma City project and the Airport Metro line, were put on hold by the Revanth Reddy-led government.

A stable government and capable leadership are what investors expect from a state. Policy discontinuity will rattle investors’ confidence and eventually damage the business environment in the state. Andhra Pradesh is one such classic example. The new government formed in 2019 canceled all old agreements, which affected potential investments. Even to this date, investor confidence has not been restored in the state. If the Congress government continues with its tendency to scrap major projects, a similar danger is looming over Telangana too.

Without any sound reason or rationale, the current regime has reversed the efforts of the earlier government in developing two key infrastructure projects. The proposed Pharma City is a green project with the potential to create more than 5 lakh direct jobs. Once operational, the project will further strengthen Telangana’s position as a pharma hub. The Congress government mulling to build a township instead of the Pharma City is nothing but an ill-conceived decision.

The same is the case with the proposed Airport Metro. Any public transport project will be designed keeping in mind the growing needs and future demands. Plans were already in place, and tenders were called for the construction of the metro corridor connecting the city with the airport. Now, canceling the tenders and scrapping the project will disturb the brand of Hyderabad and the image of Telangana.

The airport line would also connect suburbs of Hyderabad like Shamshabad and Budwel with the IT corridors of the city, thus helping in decongestion of the city and resulting in decentralized development. Assuming that the Airport Metro is only for commuters traveling to the airport exposes the Congress party’s ignorance.

Furthermore, there are reports that Corning, the world’s leading gorilla glass manufacturer, is contemplating shifting its proposed investment from Telangana to Tamil Nadu. Given the Congress government’s tendency to make impulsive decisions, it won’t be a surprise if we hear more such news in the days to come.