The Government of Telangana admitted that several companies are shifting their base from Hyderabad (existing common capital) to the successor state of Andhra Pradesh. In a report submitted to 14th Planning Commission, Telangana government made it clear that there is a huge exodus of firms, business establishments from T to AP. "Already, we have reports that 3000 dealers, businesses and trading houses moving to AP. It will cause an erosion of tax not only in VAT (Value Added Tax), but also stamps and registration, motor vehicles tax and state excise."
State govt. of Telangana is apparently fretted that there is "huge" drop in the number of visitors to Hyderabad. It claimed that this in turn affect downfall in "sales" of daily commodities and pertoleum products. Claiming this, T-govt now wants Planning Commission to allocate "more" funds and said that 8 out of its 10 districts are "backward", "drought-prone".