At last, Singapore government opted out of Amaravati capital city start-up area project which was taken up during the previous Telugu Desam Party government led by N Chandrababu Naidu in 2017.
A statement to this effect was released by the Ministry of Trade and Industry of the Singapore government on Tuesday.
The decision follows a government order issued by the YSR Congress party government led by Y S Jagan Mohan Reddy on Monday.
“The Singapore Government notes the decision by the Government of Andhra Pradesh to close the Amaravati Capital City Start-Up Area project via a Government Order dated November 11, 2019,” the statement said.
The closure is based on mutual consent between the GoAP and the Singapore Consortium (comprising Ascendas Singbridge Pte Ltd (now part of CapitaLand Group) and Sembcorp Development Ltd).
Minister-in-charge of Trade Relations S Iswaran said, “The Singapore Consortium was appointed by the Government of Andhra Pradesh in 2017 to help master develop the 6.84 square kilometres of 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”.
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 but that its closure does not impact their investment plans in India.
He said Singapore companies remain interested in opportunities in Andhra Pradesh and other Indian states because of the size and potential of the market.
“Our economic agencies will continue to help our companies internationalise by exploring opportunities in India and other overseas markets,” Iswaran said.
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