With the announcement of a Separate Telangana, Hyderabad is in a fix. The city is home to a large revenue generating industry for the state of Andhra Pradesh. Since Andhra Pradesh will cease to exist by 2014, where will the revenue from Hyderabad go?

The IT and ITES sectors generate a huge percentage of revenue for the state, in the range of Rs 42,000 crores. Hyderabad alone contributes to over 50% of the state's revenue with an estimated 75,000 crores business.

Hyderabad, due to its geographical location in Telangana, is woefully in a dilemma. The people of Telangana want the entire revenue from Hyderabad for their new state's development. On the other hand, the government is at a loss to explain how any revenue would be shared between the states. It should be noted that Andhra and Rayalaseema have also contributed towards the city's development.

The recent developments spell bad news for the city, with many corporates deciding to shift shop to Andhra. Even educational institutions are considering a shift. The government is yet to present a plan with regard to the city's revenues for the two states.

On a related note, it is confusing to think of how the city will accommodate two governments during its 10 year period as a common capital. Two chief ministers and legislatures are sure to create trouble. Hyderabad is caught in a fierce tug of war between Telangana and Seemandhra.

(AW: Sruthi)