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End of Amaravati? AP cancels deal with Singapore for the city development

13-11-201913-11-2019 10:30:30 IST
2019-11-13T05:00:30.786Z13-11-2019 2019-11-13T05:00:28.135Z - - 09-04-2020

End of Amaravati? AP cancels deal with Singapore for the city development


The Jaganmohan Reddy government cancelled the agreement with a consortium of Singaporean companies aimed at developing indfrastructure the Amaravati capital city. The two parties - Amaravati Development Corporation (ADC) and Singapore Amaravati Investment Holdings (SAIH) had entered into an agreement during Chandrababu Naidu's term to develop a startup area of 6.84 sq km in Amaravati capital region

"The government has approved to refrain from proceeding further in the Startup Area Development Project of 6.84 sq km and in-principle approval to wind up Amaravati Development Partners by voluntary liquidation on a mutual consent basis between the shareholders," said the order issued on Monday.

The Andhra Pradesh Capital Region Development Authority (APCRDA) Commissioner has concluded that the objective of startup area has not served its intended purpose. Accordingly, partner companies have been asked to withdraw their share capital.

The government of Singapore has also issued a statement confirming the development and said that the decision was mutual although it had costed the consortium of companies several millions of dollars. 

"The Singapore consortium companies have stated that the project cost them a few million dollars and that its closure does not impact their investment plans in India," said Minister-in-charge of Trade Relations S Iswaran.

He added: "Singapore companies remain interested in opportunities in Andhra Pradesh and other states because of the size and potential of the market."

Meanwhile, leader of the opposition Chandrababu Naidu expressed disappointment over this development and stated that this move from the government has now put the state on 'path of devastation'. 

"AP was brimming with hope when the Singaporean Govt signed up with us to co-participate in building Amaravati. The dream lies shattered today with them pulling out. Hope is lost. Investments are gone. Trust has disappeared. Andhra Pradesh is on the path of devastation, " said the former CM. 

Sharat Bhamidi

With 5 years of experience in Digital Media, Sharat Bhamdi specialises in creating content for webistes, developing ad campaigns and social media campaigns. At NewsSting, he handles the video division where he brings in content through feature videos and interviews.
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