Thursday, August 15, 2013

Unmasking of Naidu’s contributions to Hyderabad

28th November 2012

We often hear from our TDP friends and Chandrababu Naidu himself that he, Chandrababu himself was responsible for development of Hyderabad into a world class (?) city and IT revolution that had swept India and that cell phone technology was invented and brought to use of the public (?). Their claims belittle Al Gore’s claim of inventing Internet. These claims are incorrect and are deliberately misleading, and without any basis. Hyderabad was the fifth largest city in 1956 and was fifth largest city in 2004 and in 2012. Osmania University is a century old university.

Immediately after India became independent, the Government took upon the responsibility of Industrial development of the country. As there were not too many private entrepreneurs available at that time, the Central Government started a large number of public sector units (PSUs). The PSUs awarded to AP included BHEL, HMT, HAL, BEL, Hindustan Cables, IDPL, NRSA, Nuclear Fuel Complex, ECIL, NMDC, STP, CMC, and NFDB. In addition, a large number of civil and defence research laboratories were also sanctioned by Central Government in AP including DMRL, DRDL, DLRL, DRDO, IICT, CCMB. For reasons best known to the Chief Ministers of those days, unlike in other states where the Central Government public sector units were widely dispersed all over the State, in our State all of them were set up in and around Hyderabad. The private sector came as ancillary to the PSUs and were set up in the proximity of PSUs naturally.

It is because of IDPL, Hyderabad has emerged as the bulk drug capital of India. 90% of these pharmaceutical companies are located in Hyderabad and some of these ancillaries have grown into global companies with huge assets. All these developments took place when Mr Chandrababu Naidu was in his high school and, for him to claim any credit for these is like living in fool’s paradise.

Similarly, the only public sector institutions that were engaged in software development in the country viz ECIL and Computer Maintenance Corporation (CMC) had their head quarters in Hyderabad. It was because of this that Narasimha Rao Government at the Centre, which saw an opportunity for the promotion of software industry in the country promoted six Software Technology Parks (STPs) in India in 1991 and Hyderabad got the first of these. Chennai did not get its own STP till recently. Satyam Computers which was India’s fourth larger software exporting companies was also promoted in early 1990s.

Where and what was the position Chandrababu Naidu holding at that time? There is no greater dishonesty for him to claim any credit for the software development in Hyderabad. It so happened that when Y2K in Western world provided a great opportunity for software exports from India he was the Chief Minister of Andhra Pradesh (AP). If he was as efficient as his predecessors were, he should have grabbed the opportunity for making the state as the largest exporter of software from India, as in the case of bulk drugs. That did not happen and instead, Andhra Pradesh was ranked 3rd in software exports in 1995, i.e. before he became CM in September 1995, has slid to 5th position in 2004. The gap between the software exports of Bangalore and Hyderabad which was just Rs 250 crores in 1995-96 has widened to Rs 2,500 crores in 2003-04 i.e. when he left his seat. AP’s share of India’s software exports in 2003-04 was only 9% as against Karnataka’s 38%. Despite this, thanks to his extraordinary clout in media, he launched a nation-wide propaganda that Hyderabad was the IT Capital of India. Other States like Karnataka and Tamilnadu which have really done wonderful job had never claimed any credit for this. Unsurprisingly, a modest leader that Dr YSR was that he too never claimed any credit for improving AP’s share of 9% in India’s software exports in 2003-04 to 14% in 2008-09.

The only credit Chandrababu can claim is for bringing ISB, but what is the ISB’s social and economic impact on the State or for that matter on Hyderabad? Who are the real beneficiaries of that institution? Unlike Chandrababu, Dr YSR promoted three IIITs, an IIT and 18 new Universities and unlike Chandrababu, Dr YSR always said that the credit must go to the children and their parents for their success in education and IT development. He always used to say that it’s not due to effort of the politicians, but because of the toil of parents and children that they go places and government only provides the facilities and avenues for the children. Big difference between Chandrababu and YSR.

Chandrababu should be credited for donating 850 acres of prime land in Hyderabad with a market value of Rs 2500 crores to his close relative (Billy Rao) from Chittoor district for a deferred payment of Rs 400 crores in the midst of an Interim Government. The IMG Bharath to which said donation was made was a sham company with just one lakh rupees share capital. Similarly, Chandrababu gifted away 535 acres of prime land to EMAAR at Rs 29 lakh per acre although the fair market price was Rs 3 crores per acre in 2002, confirming the loot of the public property.

Chandrababu also must be credited for closing down of prestigious state public sector units such as Allwyn, Nizam Sugar Factories and others of which most of them have been pocketed by his supporters. Yet, he claims to be an honourable man and all others unethical.

D A Somayajulu, Member of Political Affairs & Central Governing Committees of YSR Congress Party, with Gurava Reddy (Atlanta), CVR Murthy (Hyderabad)

2 comments:

  1. Know your facts dear. Don't fudge them. it's true that Software Technology Parks were started in 1990's. But none of them made any major impact till 2000. Banglore was ahead of any indian city by 1990's(for software exports) and it continued its dominance till date. It's not just the effort by any party, the location, climate and the education in that city paved path for high investments. While Chennai was the industrial capital of south India even before we got independence. Hyderabad was no where until 2000. If you are a software engineer, you should have known what the difference Mr babu made by bringing Microsoft to Hyderabad. Infosys and Wipro started their campus next to Microsoft only after 2000. Dell and Oracle were reluctant to open a campus in hyderebad before 2000.
    There were just rocks and hills in Madhapur area. Satyam was not doing great business in 1990's. It's just another startup company. Though by luck or by chance he really made that city to stand in par with others.
    p.s I am neither supporter of Babu nor congress. It will be a sin to forget the good deeds of Babu or YSR though both have amassed gigantic properties in disguise of CM.

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  2. Industry bangaloore lo, chennai lo software vasthe location climate education karanamaa ... hyderal abad lovasthe chnadra babu karnamaaa ....ikkadaina ekkadainaa main karanam cheap labour thakkuvaa dabbuklaku pani cheyagalige english matladagalige resources .... adi south india (literacy rate ekkuvagaa vunna )lo vundadame main karanam andhuke kerala ( communist state) thappa south india lo anni chotlaa software industry perigindhi .....microsoft vachinaa raka poyeenaa software industry perigedhi just because they get profits.

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