Srikrishna Committee Report : Do not disturb confidence of stakeholders


Running through the centuries since the foundation of Hyderabad by Mohammed Quli in 1580, Justice Srikrishna Committee narrates how it has developed...

Running through the centuries since the foundation of Hyderabad by Mohammed Quli in 1580, Justice Srikrishna Committee narrates how it has developed into a “Primary city”. Its population is larger than next 9 largest cities in Andhra Pradesh. The share of economy of the city and the levels of dependence of people from outside on such activity reflect this situation. Considering all this, in the concluding part of its chapter on Hyderabad, the report says, “…there should be no destabilization of the economy of Hyderabad, flight of capital, or erosion of business confidence and all stake holders continue to have access to the city. Its brand image and its becoming a hub of new economy should continue”.

The committee has taken the help of Centre for Policy Research, a Delhi-based organization to study various aspects of Hyderabad. While mentioning that the Nizams had made it a point to welcome outsiders to take part in the economic activity even before the Independence, the committee noted that the economy had picked up pace after the Independence.

N T Rama Rao, upon becoming Chief Minister in 1983 made Hyderabad the cultural centre for Telugu speaking people. Not only the Telugu film industry shifted from Madras to Hyderabad but even several successful entrepreneurs from other regions migrated to the city. Thereafter his successor Chandrababu Naidu turned the city into an IT hub and a world class city. Now it is an IT destination next only to Bangalore. The population which was about 76 lakhs in 2001 was projected to be over one crore by 2011. Area-wise the GHMC is 626 sq km and the HMDA 7,073 sq km.

The points of importance are, Hyderabad city and Ranga Reddy district together form a large share of economic activity in Telangana region. It comprises 44% of registered manufacturing, 39% of construction, 57% of transportation and 66% of modern services.

As far as employment is concerned, public services are much less than private employment. When compared to all the three regions the extant of modern services is 39% in the city of Hyderabad. Similarly 16% of trade services, 19% of transportation, 8% of construction is in and around Hyderabad. Compared to it the public services are just 10%. What is to be noted is, the share of employment in modern services is growing. Of the 103 approved SEZs in the State, as many as 57 are located in and around Hyderabad and Ranga Reddy district. The rest of Telangana has 10, Andhra 28 and Rayalaseema 8. Composition of IT firms is not only local but also national and international. In the over 100 such firms most are connected with national and international business than the regional economy, notes the committee. Connected with this economy real estate activity is also booming which is again considerably national. Interestingly,

notwithstanding the movement for Telangana statehood, investments in infrastructure continue. Government policies, cosmopolitan nature of the city, wide use of Hindi are helping this kind of growth, the committee says. Another major indicator of importance of Hyderabad is the level of in-migration. If the annual figure for the rest of the state is just 1%, it stands at 10.6 for Hyderabad city. As per the 2001 census, 14 lakhs, or about 25 % of the city population come from various other regions. However, this share has been falling. Migrants from the three regions, the committee said, “especially from coastal Andhra”, have contributed substantially to the economic growth of the city and “continues to hold a stake in important businesses.” But, the recent patterns of migration changed once again “with many now being from other parts of the country”.

Other than employment opportunities, education for youth has been another important reason for people coming into Hyderabad, the report noted. Small traders and semi-skilled workers come from all over the State to find work in the city. Not naming the movement directly, the committee says, “People from the three regions have developed strong material and emotional attachment to the metropolis and fear loss of access in case of changes in the State’s contours”.

In the context of Telangana issue, the committee points out that, during the period of 2000-2010, of the 94 groups that invested in Hyderabad-Ranga Reddy region as many as 74 are from outside Andhra Pradesh. The report did not give any break up of investors from Hyderabad itself, Telangana, Andhra and Rayalaseema for the rest of 20 groups. In the conclusion, the report says, as mentioned at the outset, that nothing should be done to destabilize the economy of Hyderabad and disturb the confidence of different stakeholders.
(Last of the 5-part series)

Bifurcation: The wider issues

Carving of Telangana out of Andhra Pradesh State continues to hang fire when almost everyone thought that the UPA Coordination Committee and the Congress Working Committee had taken a final position. However, the decision has thrown up several questions, with Seemandhra parties up in arms. The issues of Hyderabad city, water resources, power, educational and employment opportunities have become bones of contention between the two regions.

In view of the current developments, let’s take a look once again at the report of Justice Srikrishna Committee that was set up in 2010 to study the Telangana issue. Without going into the recommendations made by it, as there was no definitiveness about them except offering various options, The Hans India will be running relevant excerpts from the report, topic wise.
The idea in publishing them is to initiate a debate in these columns from various sections of people from all the three regions of the State. Readers are welcome to send in their views which will be published in due course. They should be written in English and to the point. Please mention the complete address and phone number. Also attach a passport size photograph and mail to

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