Political uncertainty in Andhra Pradesh has made the country's two top B-schools Indian Institute of Management, Ahmedabad (IIM-A), and XLRI, Jamshedpur put on hold their plans to set up campuses in the state.

IIM-A and XLRI were invited in 2008 by late chief minister Y S Rajasekhara Reddy (YSR).

"After YSR's death and due to the agitation for Telangana, there is an atmosphere of uncertainty.

Former chief minister K Rosaiah also wrote to us that they wanted to take it forward, but, then again, there was a change in the government.

The situation here is fluid and since the initiative is yet to come from the right quarters, things have not happened as planned," said IIM-A Dean B H Jajoo.

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In June 2010, IIM-A had said it was in talks with the state government.

It sought 150 acres and Rs 100 crore (Rs 1 billion) funding from the government.

"Verbally, the government promised 100 acres closer to Hitec City.

In the last two years, nothing much has happened. Once we get going, we don't need the political support.

We do plan to set up our campus here but are waiting for clarity and an opportune time," he said.

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XLRI's plans have been hit as the government is yet to transfer land. XLRI had sought 75 acres.

Rosaiah wrote to XLRI in August 2010, requesting it to set up a campus in Hyderabad and promising support.

The XLRI governing board, too, approved the proposal. The land was to be allotted at Jawahar Nagar on the city's outskirts, close to BITS, Pilani.

"The land allotment is still pending," said an XLRI faculty member.

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IIM-A had planned to begin by offering executive programmes and later explore the possibility of starting academic programmes.

The institute wanted to link the Ahmedabad and Hyderabad campuses for seamless operations.

XLRI, on the other hand, had plans for a full-fledged campus. At present, it offers satellite courses at its Hyderabad centre.

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According to government sources, the land selected by XLRI belongs to the Hyderabad Metropolitan Development Authority (HMDA).

HMDA, though a government outfit, is a commercial organisation and so can transfer land only on a payment basis. The same is the case with IIM-A.