AP government inks pact with Singapore for developing Amaravati
- A Singapore consortium will form a project SPV - Amaravati Development Partner with Amaravati Development Corporation
- The Singapore consortium will have a 58 per cent equity share in this while the ADC will have 42 per cent
- This consortium was initially opposed by the senior IAS officers of the state
FollowThe areas of cooperation between the governments of Andhra Pradesh and Singapore include economic development, master development of the startup area in Amaravati besides promotion of bilateral trade and investments and enhancing capacities of government departments.
"For speedy implementation of the project, a high Level Joint Implementation Steering Committee (JISC) will be formed co-chaired by Chief Minister, Government of AP and Minister for Trade and Industry, Government of Singapore. Similarly, a Joint Implementation Working Committee (JIWC) will also be formed with senior officials from both the governments," an official statement of Andhra Pradesh government said.
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The statement said a Singapore consortium will form a project SPV - Amaravati Development Partner (ADP) with Amaravati Development Corporation (ADC). Singapore consortium will have an equity participation of Rs 306 crore (58 percent) while Amaravati Development Corporation (ADC) will have Rs 222 crore participation (42 percent).
"ADP will develop an area of 1,691 acres, in 15 years in three phases of each about 5 years," the statement said adding estimated benefits include 2,50,000 jobs while contribution to GSDP will be Rs 1,15,000 crore. AP Chief Minister N Chandrababu Naidu promised to develop Amaravati as most liveable city with 'people first' concept on par with Singapore and international standards.
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Addressing a gathering after signing MoU with Singapore consortium to develop startup area in Amaravati, he said, everything should be focused on people-centric development to provide wealth, happiness and health in the new capital.
Until last year, this partnership had been challenged by a lot of senior IAS officers. But then setting aside major objections especially from the finance department, the state government accepted the Singapore Consortium proposal.
Singapore consortium of Ascendas-Singbridge and Sembcorp Development Limited had submitted a proposal on October 30, 2015 under Swiss Challenge to be the master developer of Amaravati. The Singapore government has 74.5 per cent equity in the consortium.
