The Amaravati Start-Up Area Development Project has formally been scrapped after the Andhra Pradesh Cabinet on Wednesday decided to terminate the agreement with a Singapore consortium. The Singapore government has confirmed the decision.
The closure is based on the mutual consent between the AP government and the Singapore Consortium, which comprises Ascendas Singbridge Pte Ltd, now part of CapitaLand Group, and Sembcorp Development Ltd, said a statement issued by the Singapore ministry of trade and industry on Tuesday.
The Amaravati Start-Up Area Development Project was the first major real-estate venture that the previous TDP government had undertaken under the Public-Private Partnership mode and selected the Singapore consortium of Ascendas-Singbridge and Sembcorp Development through the controversial Swiss Challenge method as the Master Developer.
The statement quoted minister-in-charge of trade Relations S Iswaran as saying 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.
“Companies recognise such risks when 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,” he said.
Iswaran said 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.”
The closure is based on the mutual consent between the AP government and the Singapore Consortium, which comprises Ascendas Singbridge Pte Ltd, now part of CapitaLand Group, and Sembcorp Development Ltd, said a statement issued by the Singapore ministry of trade and industry on Tuesday.
The Singapore consortium was appointed by the government of Andhra Pradesh in 2017 to help master develop the 6.84 km2 Start-Up Area of its new capital city Amaravati.
The Amaravati Start-Up Area Development Project was the first major real-estate venture that the previous TDP government had undertaken under the Public-Private Partnership mode and selected the Singapore consortium of Ascendas-Singbridge and Sembcorp Development through the controversial Swiss Challenge method as the Master Developer.
On October 30, the Andhra Pradesh cabinet and took a decision to terminate the agreement with the Singapore consortium, information and public relations minister Perni Venkata Ramaiah (Nani) told reporters.
The statement quoted minister-in-charge of trade Relations S Iswaran as saying 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.
“Companies recognise such risks when 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,” he said.
Iswaran said 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.”
First Published: Nov 12, 2019 2:39 PM IST
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