The Andhra Pradesh government has canceled an agreement with a consortium of Singaporean companies for the development of the Amaravati capital city startup area project.
Amaravati Development Corporation (ADC) and Singapore Amaravati Investments Holdings (SAIH) had formed a joint venture called Amaravati Development Partners to develop a startup area of 6.84 sq km in Amaravati capital region when the earlier Telugu Desam Party (TDP) government was in power.
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 Singapore government also issued a statement saying that the decision was mutual but added that it had cost the consortium companies several million 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.”