Try to drop a small pebble (glass marble) , approximately 5 mm in diameter and measure the amount of time it takes to touch the water. The thumb rule is about 15 ft per second hence if water is at around 90 ft, it should take 6 seconds to strike water. The sound would be loud and audible on surface. Once that is confirmed pour some water, say about 1000 liters in the well and see if the pump is functioning properly. At a minimum, 60% of the water that you put in should be pumped out.
If no discharge is got from the pump after putting water in the bore well, get the pump and pipeline out.
At the same time check the level of water in the bore well by attaching a weight to a Nylon rope and lowering it into the bore well. If the Static water level in the bore well is around 90 ft the problem is with the pump and not the bore well. Check for leaks in the pipeline, and check the pump assembly, and try it out in a tank of water
If there is no water in your bore well, it is quite possible that the neighboring bore well which is at 344 ft is lowering the water table, which is affecting your bore well. The connection with it has already been confirmed as water started gushing from the neighbor's bore well while drilling
Air flushing is not needed. Just deepen the bore well. Hydro fracturing will not help if the water table is being lowered below the depth of your bore well. Moreover Hydro fracturing will cost as much or even more as compared to deepening of the existing borewell.
Anil Lalwani (http://www.indiawaterportal.org/users/wellwaterworks)
It looks like a dipping conduit connection of the fracture between this borewell and the neighbour's bore well towards the neighbour's side. Further drilling would be possible with a higher capacity drilling rig. Once the conduit zone is crossed and if another spring is reached then the water head will rise above the conduit level and the pump can reach and push the water out. The deeper the drilling the higher will be the pressure head and it is likely to overcome the entry velocity while crossing the conduit zone and sufficient water may get pumped out.
Drilling a new borewell nearby runs the same risk of being connected with the neighbour's borewell. It is better to drill further in the same bore well.
Since there is some water at a great depth in the well, it is worth lowering the pump to 1-1.5 m above the well bottom and pumping out water.
A Rajamohamed Ambalam (http://www.indiawaterportal.org/users/rajamohamed-ambalam)