Singapore, Andhra end Amaravati startup area project

The Singapore consortium said Andhra Pradesh's decision to close the Amaravati capital city startup area project on Monday was mutual

The Singapore government has declared that the Andhra Pradesh's decision to close the Amaravati Capital City Start-Up Area project via a Government Order on Monday is based on mutual consent between the government and the Singapore Consortium, comprising Ascendas Singbridge Pvt Ltd and Sembcorp Development Ltd.

However Y S Jaganmohan Reddy says the Singapore Consortium failed to utilise the land allocated to it. In a statement issued here on Tuesday, Singapore Minister for 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-sqkm start-up area of its new capital city Amaravati. We note that the newly elected AP government has decided not to proceed with the start-up area, given its other priorities for the state”.

He noted that 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,” the note added.

“Singapore companies remain interested in opportunities in Andhra Pradesh and other Indian states because of the size and potential of the market,” the release by the Ministry of Trade and Industry said.

'No satisfactory reply'

"The project was called off with mutual consent after there was no satisfactory answer to the concerns we raised. There was no progress in the required measure and set parameters in the capital area region,” Minister for Municipal Administration and Urban Development, Botsa Satyanarayana said in a statement.

He said that the work has not begun at the desired pace, and the project lacked development and growth on a fast-track, so the government decided to close the issue.