Bifurcation of Andhra Pradesh is expected to see increased economic and business activities in both the states but there is a need for early resolution on sharing of resources and clarity on the new capital, say industry and bank officials.
SBI Managing Director A Krishna Kumar said the objective of bifurcation of any state would be to enhance growth of both the regions.
"And we take this as an opportunity because of the fact that once these two states are created, there will be additional opportunity for banking and economic activity and growth," Kumar told reporters on the sidelines of inauguration of a branch today.
"It is difficult to put number. But, certainly the objective of such bifurcation is to enhance the growth and the economic well being of people of the two states," he said.
"It (creation of Telangana) is nothing new for State Bank of India. The bifurcation of states happened in Bihar, Madhya Pradesh and UP. We have our offices there and we continue to do business well (in those states)," he said.
However, he acknowledged that the agitation in Andhra Pradesh (pro and anti-Telangana) for the past few years has impacted the bank business in terms of collections and disbursals in the state.
Confederation of Indian Industry (CII) Andhra Pradesh said the passing of Andhra Pradesh Reorganisation Bill-2014 by the Lok Sabha brought clarity on the long pending issue, though a number of issues are yet to be settled.
B Ashok Reddy, Chairman CII AP and President –Global HR of Infotech Enterprises, however, noted that distribution of resources like water and power, amongst Telangana and Seemandhra, state government policies and tax benefits are some of the things which are yet to be decided.
"Another important part is Hyderabad being joint capital of both states for 10 years, post this period which city will be Seemandhra's capital may again become the bone of contention between the people of Rayalaseema and Andhra, which may impact the growth prospects of the new state in case that decision is not taken quickly," Reddy said.
Additionally, when the new state is formed, the distribution of different industries should be based on the availability of resources and talent. Creating quick social infrastructure should also be considered for an all inclusive growth," the CII felt.
Federation of Andhra Pradesh Chambers of Commerce and Industry (FAPCCI) said that with the political impasse on Telangana over, the industrial climate will improve and become stable.
"Now, the FAPCCI hopes that an excellent and good new industrial policy will be formed by the new governments in both the states and we will have a conducive climate for industrial growth," it said, adding that it would work in tandem with any government for mutual benefit.