Singapore Government, which has been waiting for AP CM YS Jagan’s decision on Amaravati Start-Up Area Project, has finally got a rude shock with Jagan administration decided to cancel the pact with the Singapore Consortium. AP CM Jagan Reddy has decided to terminate the pact and AP state cabinet on Wednesday decided in favour of CM Jagan’s decision. Information and Public Relations Minister Perni Venkata Ramaiah alias Nani announced the development. With this, the decision has become official.
Previous government headed by then CM Chandrababu Naidu had entered into a pact with Singapore Consortium on Amaravati Start-Up Area Development Project. Amaravati Start-Up Area Development Project was aimed at developing start-up area to provide necessary infrastructure in a 6.84 sq km area (1,691 acres) in three phases over 15 years. And the project was undertaken under the Public-Private Partnership mode by previous AP state government which was first. Then government had chosen the Singapore consortium of Ascendas-Singbridge and Sembcorp Development through the controversial Swiss Challenge method as the Master Developer of the project.
Previously TDP government had entered into a memorandum of understanding with the Singapore Consortium on May 15, 2017, for executing the project. According to the MoU, Amarvati Development Corporation (ADC) and Singapore Amaravati Investment Holdings Limited, which together constitute the Amaravati Development Partners (ADP), signed the Concession Agreement and development Agreement (CADA) and the Shareholders Agreement. The Singapore Consortium will have 52 percent and ADC will have 48 percent stake in ADP, which will take up development projects in 656 acres in the first phase in the five years. However, the project did not take off. A part of the allotted land for the start-up purpose was stuck in an ecological-legal tangle as 170 out of 1,691 acres were right on the river bed.
Now that Amaravati’s future hangs in balance in Jagan administration and an Experts Committee has been formed to decide the future course of action on AP Capital, the deal with Singapore Consortium is cancelled.
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