The government of Singapore and Andhra Pradesh has terminated the Amaravati Capital City Startup Area project on Tuesday, November 12, after the state demanded the closure through a government order dated November 11, 2019.
In a statement, the Singapore Ministry of trade and industry said that it has noted the decision by the AP government over the closure of the project. 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 AP in 2017 to help master develop the 6.84 km2 StartUp area of Amaravati. We note that the newly-elected government has decided not to proceed with the StartUp area given its other priorities for the state," read the press release.
Amaravati project closure to not impact further investments
The minister said that all companies recognise such risk factors before venturing into the overseas market and factor them into investment decisions. He said that companies under the Singapore Consortium has lost a few million dollars in the Amaravati project but the closure of the project will not impact their decision on further investments in Andhra Pradesh or any other states as India has a potential market.
He further said, "The economic agencies of Singapore will continue to help our companies in internationalising by exploring opportunities in India and other overseas markets."
The government of Andhra Pradesh headed by then chief minister N Chandrababu Naidu had sought help from Singapore in 2014 for developing the new capital Amaravati. The project's development was expected to take over 20 years in partnership with Andhra Pradesh. A few months ago the World Bank had also pulled out from a proposed development project in Amaravati.