The venue for the annual Partnership Summit, 2010 of the Confederation of Indian Industry (CII) has been shifted due to "political problems" in Andhra Pradesh, a CII source said.
The event, now scheduled from January 22 has been shifted on the advice of the government, he said.
While the Commerce Ministry is partner in the event, it is the Home Ministry which is understood to have advised on shifting the venue.
The chamber had touted Hyderabad as a "city at the forefront of India's knowledge industries".
International participants expected to attend the event would head for Chennai and not Hyderabad which is in the midst of political turmoil on the issue of Telangana.
After the Centre had conceded earlier this month the demand of the Telangana Rashtra Samiti (TRS) for a separate state, the parties, their MPs and state legislators from the Andhra coastal and Rayalaseema region are up in arms against the move.
Business environment in Hyderabad and several other AP cities has been affected as the situation remains volatile in the state
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