Andhra Pradesh

Amaravati start-up area project is unviable: Minister

Buggana Rajendranath Reddy

Buggana Rajendranath Reddy  

‘Agreement with Singapore consortium terminated in the best interests of the State’

Finance Minister Buggana Rajendranath Reddy said on Wednesday that the termination of agreement entered into by the Amaravati Development Corporation (ADC) with the Singapore consortium, Ascendas Singbridge-Sembcorp, for development of the Amaravati start-up area was in the best interests of the State.

“It was found to be not feasible. The government realised that the start-up area spanning over 1,700 acres was a small part of the Mega City proposed to be developed. It was also realised that development of the capital region required about ₹2 lakh crore, which was of the size of the annual State budget,” Mr. Rajendranath Reddy said in a release.

Without developing the whole area, there was no meaning of having a business district in it, he observed, and pointed out that such a huge project could neither be completed in five years nor did the State finances permitted it.

Holistic development

The government found that the State had other important requirements for holistic development of the entire State, he said. In this backdrop, the development of the start-up area was an impossible task, the Finance Minister added.

“The ADC and the Singapore consortium (represented by the Singapore Ministry of Trade and Industry), therefore, decided to wind up the project with mutual consent. It does not impact the investments from Singapore in India,” the Minister said.

Land acquisition

Mr. Rajendranath Reddy stated that development of Amaravati in one lakh acres required the acquisition of 35,000 acres of fertile land through the much-hyped pooling method and about 10,000 acres of government land. It was also proposed to acquire over 40,000 acres of forest land, for which the TDP government had sought Central clearance.

Meanwhile, Municipal Administration Minister Botcha Satyanarayana said that the Singapore consortium had no satisfactory explanation for the projected revenues and other aspects of sustainability of the project.

TDP national president N. Chandrababu Naidu was not speaking about the interest shown by the Singapore companies in other growth avenues in A.P., as his sole aim was to tarnish the YSRCP government’s image by harping on Singapore’s exit from the start-up area project, he alleged.

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Printable version | Jul 4, 2020 5:40:03 AM |

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