More than 60 companies, including Xerox, Convergys, Intelligroup, Quad Cable, have decided to set up their bases outside Andhra Pradesh due to ongoing agitation for separate Statehood for Telangana.

Several others including automotive major Peugeot are considering Tamil Nadu and Gujarat.

The Federation of Andhra Pradesh Chamber of Commerce and Industries (Fapcci), a representative body of trade and commerce in the State, today raised alarm bells over the ongoing agitation and political uncertainty causing loss to State and impacting the economy.

It contended that the State has lost more than 20,000 manufacturing sector jobs and over 40,000 jobs in the services sector, including IT and BPO in the last 12 months.

Bandhs and agitations in support of the separate statehood of Telangana conservatively result in financial loss of about Rs 200 crore per day. Seventeen days of bandh has had major impact in the last one year.

Addressing a press conference here today, the President of Fapcci, Mr V.S.Raju, and the Senior Vice-President, Fapcci, Mr Devendra Surana, said that the current business sentiment has been affected. Companies are not willing to set up their base in Hyderabad and other attractive locations in the State, and are preferring other locations such as Pune, Bangalore, Chennai and Gurgaon.

“Xerox, Convergys, Intelligroup, Quad Cable, Surana Group, Kedia Infotech are among those who have opted for other locations. Peugeot and some ancillary units are undecided. Several others do not want us to comment on their plans while they are opting for other States,” Mr Surana said.

“The economy has been severely impacted and the sentiment has taken a beating. The State had consistently performed better than the national average GDP growth, which was at least 15-20 per cent higher for more than a decade.

But things have changed in the past few quarters. The state economy growth is about 7 per cent against country's 8.5 per cent,” Mr Raju said.

“The Fapcci representatives appealed to those in favour of separate State not to resort to bandhs as they impact the business causing financial loss and the general investment sentiment. We are apolitical. We do not want to take a stand on whether we need a separate State or not. It is for politicians and people decide what they want. We only want peaceful environment for business, Mr Surana said.

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