Revanth Reddy's Congress Government: Two Years of Challenges and Opportunities

The Congress government in Telangana has just completed two years in office. In the Assembly polls held on November 30, 2023, the Telangana Congress, led by Anumula Revanth Reddy as its president, secured a decisive victory with 64 seats in the 119-seat Assembly. This victory unseated the Bharat Rashtra Samithi (BRS), a regional party led by two-term Chief Minister Kalvakuntla Chandrashekar Rao, whose tally fell by more than 50 percent to 39. Revanth Reddy assumed charge as the Chief Minister on December 7, 2023.

Given his significant role in the party's victory, the national leadership had no choice but to place their trust in him, despite internal opposition from some senior leaders. Revanth Reddy began his tenure as Chief Minister on a challenging note, but he has made several bold decisions. These include the cancellation of the Hyderabad Pharma City project and the launch of Bharat Future City, the establishment of the Hyderabad Disaster Management and Asset Protection Agency (HYDRAA) to protect lakes and government lands, and the Musi riverfront development project. Another major decision was the state government's takeover of the Hyderabad Metro Rail from the L&T group, which was eager to exit the project.

Politically, Revanth Reddy has emerged stronger over the past two years. There was speculation that a significant political change might occur around the time the government turned two, but the Congress high command is unlikely to replace him for the next three years. The party has shown reluctance to change chief ministers in states where it is in power, as seen in Rajasthan, Himachal Pradesh, and to some extent, Karnataka. The recent Jubilee Hills bypoll victory further solidified Revanth Reddy's position, making it unlikely for the Congress to meddle with a winning leader in Telangana.

On the administrative front, the government has made some positive moves, such as paying salaries to government staff on time. However, there are still significant challenges to address. The acute fund crunch is a major issue, exacerbated by the previous BRS government's debt burden of over Rs seven lakh crore. The delay in clearing pending bills worth thousands of crores and the pending dues of the fee reimbursement scheme has cast the government in a poor light. Corruption remains a widespread problem, and the government needs to focus more on attracting investments.

Despite implementing several high-value promises like farm loan waivers, Rythu Bharosa (partly), free bus travel for women, fine rice distribution through the Public Distribution System (PDS), and free power to households consuming less than 200 units, the Congress regime has not fully satisfied the public. The farming community is particularly unhappy, feeling that the government's handling of the agriculture sector is inadequate. The mishandling of the urea crisis earlier this year and the lack of focus on post-harvest management have further disillusioned farmers. The government must improve its image among farmers to regain their trust. The financial burden of farm loan waivers and the Rythu Bharosa schemes is also a significant challenge, requiring a pragmatic approach to put the government's finances in order and aim for high economic growth.

The real estate sector, a key revenue-generating source for the state government, is in a slump. Hyderabad's real estate market started declining after the high-profile land auction by the Hyderabad Metropolitan Development Authority (HMDA) in August 2023. The auction saw Rajapushpa Properties, owned by associates of the BRS government, purchase land at an exorbitantly high price of Rs 100 crore per acre in the Neopolis area. This made properties in the city unaffordable for common people. The subsequent elections for the state Assembly and Lok Sabha also had a negative impact on the property market, which has yet to recover. Recent land auctions by HMDA and Telangana State Industrial Infrastructure Corporation Limited (TGIIC) might further exacerbate the situation. The unlimited Floor Space Index (FSI) norm, allowing limitless construction on lands in Hyderabad, is also a cause for concern. Reviving the real estate market is crucial for the state's economic growth.

Opposition parties pose another challenge to the Congress in Telangana. Despite their losses in the 2023 Assembly polls, the 2024 Lok Sabha polls, and the recent Jubilee Hills bypoll, the BRS remains a strong political force. KCR, while mostly confined to his farmhouse, has a son, KT Rama Rao, who is working to strengthen the party. The BRS will likely do everything possible to defeat the Congress in the next elections. The Bharatiya Janata Party (BJP), which is in power at the Center and in most states, will also strive to challenge the Congress, though this seems unlikely at present.

The Chief Minister's relationship with the mainstream media and journalists has been strained. The Congress government's attitude towards the media is concerning and unprecedented. Hopefully, this will change. The government has yet to implement key poll promises, such as doubling old-age pensions and other social security payouts, and providing monthly financial support to women. Addressing the issue of pending bills to contractors and others is also crucial. If the government does not clear these bills, the liquidity situation in the economy will not improve. The Revanth Reddy government has its work cut out. Unless the Chief Minister handles these issues dexterously and improves the government's image, it will be challenging for him and his party to retain power in 2028 or whenever the next Assembly elections are held.

Revanth Reddy has proven the skeptics wrong by running a stable government for the last two years. However, the next two years will be crucial for him and the Congress in Telangana to secure a second consecutive term. That is the reality.