Hyderabad: Political parties in the state, who rely on large-scale donations from industrialists before elections, are in a bind due to the slump in industrial growth, a sluggish real estate sector and dwindling cash flows. Moreover, with the industry sector unsure about which parties will come to power in the two states, leaders are not getting their “good will” amounts from industrialists this time.
There is a lot of difference this time from the 2009 elections when there was abundant cash flow as the country had received more than Rs 4 lakh crore towards foreign direct investments between 2004-09. The money had trickled down to many sectors, especially real estate and infrastructure.
However, the situation has changed between 2009 and 2014 with every sector witnessing stunted growth. “When they are not making profits, where is the question of us getting donations?” admitted a leader who normally looks after mobilisation of funds for one particular regional party in the state. Also with the financial year-end here, industries and other corporate sectors need to close their accounts, make tax payments and other installments, leaving hardly any ready cash at hand.
Another leader said, “Normally whenever we would seek funds, they used to obtain overdrafts from banks and tried to adjust the money. But this time it is becoming difficult for them due to repayment problem.”
However, sensing the situation, political parties in the state, be it the Congress, TRS, TDP or YSR Congress, have started encouraging businessmen, industrialists, real estate dealers and big landlords as candidates this time.
Last elections, both Congress and the TDP in the state had apparently financed Rs 50 lakh to Rs 2 crore to each Assembly candidate and Rs 4 to Rs 5 crore to each Parliament candidate. One particular party had even apparently mobilised Rs 400 crore from a top business house in the country last time for spending in the elections.
“The situation has changed now; we are getting pittance like a few lakhs that too after much persuasion,” said a leader.
One regional party leader has apparently ordered most of the party’s Lok Sabha aspirants to deposit crores of rupees with the party so that the amount can be distributed to the party Assembly candidates under that Lok Sabha constituency. It is, however, reported that some of the candidates who had earlier promised to deposit the amounts, have backed out due cash flow problem.
