YSRCP Terminates AP-Singapore Amaravati Development Project

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The Yuvajana Sramika Rythu Congress Party (YSRCP) Government terminated the joint project between Singapore and Andhra Pradesh (AP) regarding the development of Amaravati as the capital city of AP.

On the 11th of November, Y.S. Jagan Mohan Reddy, the Chief Minister of AP, made an official announcement regarding the project.  The issued notice read, “There is no intended development in the project of despite signing of Concession Agreement and Development Agreement (CADA) and Shareholders Agreement (SHA) on the 7th of June 2018.”

On the 12th of November, the Singapore Consortium, comprising companies like Ascendas Singbridge Pte., Ltd., and Sembcorp Development Ltd., accepted the orders of the AP Government and terminated the project.

The Amaravati Capital City Start up Area Project was started in 2017 under the leadership of Nara Chandrababu Naidu, the former CM of AP and the President of the Telugu Desam Party (TDP.)

The Ministry of Trade and Industry, on the 12th of November, released a statement regarding the same.

S.Iswaran, the Minister in charge of Trade Relations in Singapore, explained the termination of the project was a mutual decision and said, “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. 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.”  He further added, “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 Trade and Industry Department further said despite the termination of the Amaravati development project, Singapore companies would invest in other development opportunities in AP.

Mr. Iswaran said, “Our economic agencies will continue to help our companies internationalise by exploring opportunities in India and other overseas markets.”

The decision of the Singapore Consortium and the AP Government came after the YSRCP reconsidered Amaravati as the capital of AP and decided to choose another.  The joint project for Amaravati’s development as AP’s capital city started in 2017.

The AP Government constituted a committee and is yet to finalise the capital of Andhra Pradesh.

Stay tuned for further updates.

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