- Amaravati project shut down with "mutual consent": Singapore
- Consortium was appointed in 2017 to develop 6.84-sqkm start-up area
- Andhra decided not to proceed due to other priorities: Singapore
The new capital of Andhra Pradesh in Amaravati may not be as envisaged by former chief minister Chandrababu Naidu. The trade and industry ministry of Singapore has announced that it has noted the decision of the Andhra Pradesh government to close the Amaravati capital city start-up area project in an order on Monday.
In a statement, the Singapore government said the project has been shut down on "mutual consent" between the state government and the Singapore consortium comprising Ascendas Singbridge, and Sembcorp Development.
The consortium was appointed in 2017 to develop a 6.84-sqkm start-up area in the new capital. The note says the state government decided not to proceed with it due to other priorities for the state.
The consortium said they have lost a few million dollars, but agreed that they understood the risks involved while venturing into overseas markets and have factored them in their investment decisions. "...Its closure does not impact their investment plans in India. Singapore companies remain interested in opportunities in Andhra Pradesh and other Indian states because of the size and the potential of the market," said S Iswaran, Singapore's minister-in-charge of trade relations.
The closure of the project comes even as a committee set up by the Andhra Pradesh government to study projects in Amaravati is to submit its reports. Retired Indian Administrative Service (IAS) officer GN Rao is heading the committee that is looking into urban planning and possible relocation of the capital.
November 12 is the last day for receiving feedback from the public on Amaravati.
Farmers who have given agricultural land to the previous Telugu Desam Party government want the government to keep Amaravati as the state capital.
Prime Minister Narendra Modi laid the foundation stone for Amaravati in October 2015. In July this year, World Bank cancelled a $300 million loan for projects in Amaravati. Asian Infrastructure Investment Bank also cancelled a loan proposal of $200 million in the same month.