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Wednesday, December 11, 2019

Andhra Pradesh government scraps plan to develop start-up area in Amaravati

A government order (GO) issued late on Monday stated that the agreement with Singapore Consortium to develop the greenfield start-up area has been terminated.

Written by Sreenivas Janyala | Hyderabad | Updated: November 12, 2019 12:39:25 pm
Amarasvati, startup area, ysrcp govt, singapore consortium, Chandrababu naidu, tdp govt, andhra pradesh news, indian express Naidu’s TDP government had tied up with Singapore Consortium to develop the start-up area to boost development in the proposed capital. (File)

The Andhra Pradesh Government has scrapped the plan to develop 6.84 km as a start-up area in the capital city of Amaravati. A government order (GO) issued late on Monday stated that the agreement with Singapore Consortium to develop the greenfield start-up area has been terminated, and orders were issued to the Andhra’s Capital Region Development Authority (CRDA) not to proceed with the project anymore.

In the statement, minister-in-charge of Trade Relations S Iswaran said, “The Singapore Consortium was appointed by the Government of Andhra Pradesh in 2017 to help master develop the 6.84 kms start-up area of its new capital city Amaravati. We note that the newly-elected government of Andhra Pradesh has decided not to proceed with the start-up area given its other priorities for the state.”

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The statement also mentions that the companies recognise such risks while venturing into any overseas market and factor them into their investment decisions. “In this instance, the Singapore Consortium companies have stated that the project has cost them a few million dollars and that its closure does not impact their investment plans in India. Singapore companies remain interested in opportunities in Andhra Pradesh and other Indian states because of the size and potential of the market. Our economic agencies will continue to help our companies internationalise by exploring opportunities in India and other overseas markets,” it stated

The Singapore Government also issued a statement Tuesday saying, “The Singapore Government notes the decision by the Government of Andhra Pradesh (GoAP) to close the Amaravati Capital City Start-Up Area project. The closure is based on mutual consent between the GoAP and the Singapore Consortium (comprising Ascendas Singbridge Pte Ltd (now a part of CapitaLand Group) and Sembcorp Development Ltd).’’

The YSR Congress Party government, which came to power in May, has thus indicated that it won’t develop Amaravati as the world-class capital as previous chief minister N Chandrababu Naidu had envisaged.

Naidu’s TDP government had tied up with Singapore Consortium to develop the start-up area to boost development in the proposed capital. However, the present government on Monday approved the winding up of Amaravati Development Partners Private Ltd, Amaravati Development Corporation Ltd and Singapore Amaravati Investment Holdings Pvt Ltd which were established to work on the project.

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