Amaravati’s investment project in Andhra finally abandoned: the Tribune India
Naveen S Garewal
Tribune press service
Hyderabad, November 12
Investors and residents of Andhra Pradesh have received a great shock with Amaravati’s new investment project that was finally abandoned.
The Singapore consortium and Andhra Pradesh canceled the deal to build the Amaravati Capital City startup project after the government failed to get a convincing response on “state concerns.”
The Telugu Desam Party (TDP) today released the letter from the Singapore consortium stating that it was withdrawing from the Amaravati project with mutual consent, but still wanted to invest in other projects in India despite a loss due. investments already made.
The World Bank (WB) and the Asian Infrastructure Investment Bank (AIIB) withdrew from the project in July of this year.
The AIIB pledged to co-finance $ 200 million (Rs 1,400 crore) with the World Bank, which was to provide $ 300 million (Rs 2,100 crore) for the project. But after the newly elected YSR Congress Party (YSRCP) showed reluctance to move forward with the state’s new capital project, the project’s two backers withdrew their financial support.
After the TDP raised the issue regarding the former Chief Minister and Chairman of the TDP N Chandrababu Naidu, once again, the AP Minister of Municipal Administration and Urban Development, Botsa Satyanarayana said the project was canceled. by mutual agreement after there was no satisfactory answer. to concerns that the state had raised in response to the Singapore consortium’s accusations.
He said there had been no progress to the extent required and the parameters set in the capital region. âWe were concerned about some issues and when we asked the Singapore consortium (comprising Ascendas SingbridgePte Ltd and Sembcorp Development Ltd) what benefits the state would gain from the project and why the project was delayed. There was no satisfactory response â, so the state canceled the project.
He said work has not started at the desired pace in the start-up area and other basic formalities have not been completed, which is of great concern to the state government. He went on to say that in the past four years it was noted that the Consortium had not undertaken any tangible work while it could be seen that other institutions like VIT, SRM and Amrutha had used the land. which had been allocated to them for their intended purposes and colleges were built during this period.
The government wants development and growth on a fast track which was deemed insufficient and decided to close the file and this was done by mutual agreement.
Meanwhile, Singapore’s Ministry of Trade and Industry today issued a memo stating that âthe Singapore government takes note of the decision of the Andhra Pradesh government to close the capital Amaravati via a government decree dated November 11, 2019. The closure is based on mutual consent between the government of Andhra Pradesh and the Singapore Consortium â.
The note adds that the project has already cost the Consortium a few million dollars, but the closure has no impact on its investment plans in India.