The answer is Chandrababu Naidu. That plus the low land price, and the proximity to the airport are the factors that swung the deal for the International School of Business (ISB) in favour of Hyderabad.

On hearing the decision, Maharashtra Government officials said, ``We have to dismiss it as one more hard luck story. This decision was the last thing we dreamt of. However, there are more projects in the offing,'' they consoled themselves.

While Maharashtra Government officials were quite confident of bagging the school, it was the Andhra Government which was actually working silently right from the word go. And Karnataka Government officials said that from the beginning they had only 50 per cent chances of getting it.

While Maharashtra offered 70 acres for less than Rs 2 crore, Andhra sold it for a song -- 250 acres at Rs 25,000 per acre costing Rs 65 lakh in total. ``While we were hardselling the proposal, there was hardly anyone to respond to it. Even in Karnataka, one would have easily spent around Rs 5 crore for the land, which is a bit on the higher side,'' an official connected with the ISB said.

Director of the Indian Institute of Management, Ram Mohan Rao told The Indian Express,

``This indicates that Hyderabad is going far ahead surpassing other states. If the IIT goes to Hyderabad it will have greater effect. While we are not aware of the exact incentives offered by Naidu, Andhra is, in general, planning to offer constructive support.''

Say Karnataka Government officials, ``Let us not be worried about one project. The All India Association of Industries wants to set up another business school in Karnataka with the help of the Atlanta University of Florida. We have to initiate the process and are waiting for the Chief Minister's return from abroad.''

However, Rao of IIM, felt there are major differences between these schools as the first one is associated with two leading universities like Wharton School of Pensylvania University and J L Kellog Graduate Management school of North Western University, while Atlanta University of Florida does not figure in the top 20 in the US. Besides, the Hyderabad school is being backed by leading industrialists. In Karnataka it's promoted by an industry association.''

According to Rao, this is not going to stop young graduates from going to the US for higher studies. ``This ISB is meant for a different clientele. If you go abroad, you can study as well as establish connections. But the main problem we see here is faculty shortage. You can also procure them locally, provided you pay higher salaries''.