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Hyderabad ranked as the #Seven best
city for Business - Survey by Business Today
 All
the hype surrounding Hyderabad seems to have gone bust.
From its third ranking three years ago in the survey
conducted by Business Today, it has slipped to the seventh
position. All blame points to infrastructure bottlenecks
and belief that the city is attracting businesses faster
that the development of its infrastructure.
Take the case of power. Though the state added
2,172 mw of power since the mid-nineties, industry analysts
opine that a shortage of 10-12 per cent still exists.
Currently its installed power capacity stands at 8,283
mw, but transmission losses are a staggering 30 per
cent. Besides power is more expensive for all businesses
- a distinctive disadvantage, especially since in other
cities like Chennai power is cheaper. Even the concessions
offered on power are not reaching IT businesses. People
do believe that power is abundant but its quality is
what is bothersome.
 Piped
water does not reach all parts of the city adequately.
There is a shortfall of 30 million gallons every day
and this fact is beginning to bother a lot of people.
The Congress, in fact, is trying to push for a Water
Regulatory Committee. Pollution, like in most Indian
cities, is also a concern in Hyderabad. The respirable
suspended particulate matter is higher than permissible
levels. The roads are much better than in any other
cities of the country and are appreciated by all and
sundry. But the two wheeler population is growing at
a worrying rate.
Another big grouse the city's businesses have, is the
importance given to infotech and white-collared businesses.
However, CM Naidu's Vision 2020 calls for focus
on three kinds of industries: knowledge-based including
IT, biotechnology and pharma; resource-based including
mining, construction and agro-processing; and labour
intensive like garments and leather products.
 Problems
still linger despite all the importance given to knowledge
based industries. Take for example the telecommunications
wing of the IT industry. The government claims to
have the highest teledensity in the country, yet Chennai
and Bangalore boast of higher teledensity. For biotechnology,
there are not enough representative units such as FMCG
or other major manufacturing facilities, which in turn
leads to human resource deficiency. CEO's also complain
about the work culture. Hyderabad is infamous for its
rather 'very laidback' professionals.
Hyderabad of course has its share of advantages as
well. The people are happy with the cost of living,
which is pretty low. There are adequate housing facilities,
good law and order situation and an efficient public
transport system. The city's tech park - Hi-Tec City
has achieved full occupancy with some big infotech companies
having their offices here. But there is one element
that cannot be matched by any other city - its Chief
Minister, N Chandrababu Naidu. The city's CEOs love
him for his accessibility and quick redressals of infrastructure
bottlenecks.
On a concluding note, Hyderabad has the capacity to
regain its top ranking but has to quickly address all
the pressing needs and better infrastructure. Then alone
can they hope to bounce back.
Source - Business Today
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Trade
and Commerce
