After the bifurcation, the two state governments have been trying hard to bring new businesses and factories into the state. However, in case of Telangana Chief Minister K Chandrasekhar Rao had many talks with the Centre and other private companies about the coming up new projects.

Shocking all the Telangana people, the country's famous paper mills, Sirpur Paper Mills, in Khagaznagar at Adilabad district are planning to close down the mills as huge loss has incurred during few years. This decision has pushed the employees in deep grief and this is surely termed to be a big shock to Telangana people.

It seems more than 3500 employees work for these mills and will be facing great difficulty if they shut it down. Even though the government has talks with the mills management, they are going ahead to take this bold step. However, many say that government should have declared a financial aid for this.

A analyst said "KCR should have intervened and helped the factory to continue its operations. An interest free loan of Rs. 100 crore would have worked and the lives of over 1 lakh people in Kagaznagar town are left in confusion now."