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Andhra Pradesh calls off Amaravati Capital City Start-Up Area Project

Wednesday, 13 Nov 2019
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The government of Andhra Pradesh has called off the Amaravati Capital City Start-Up Area Project.

The state government and a Singapore consortium have agreed to call off the project with mutual consent. Accordingly, the state government issued an order dated 11 November 2019 announcing its closure.

The project was a part of the ambitious multi-billion-dollar Amaravati Capital city.

The closure of the project is based on mutual consent between state government and the Singapore consortium consisting of Ascendas Singbridge and Sembcorp Development and the Singapore government.

The Singapore consortium was appointed by the state government in 2017 to help master develop the 6.84 sq km Start-Up Area of the new capital of Amaravati.

The state government has decided not to proceed with the project given its other priorities for the state.

The project aimed to develop an area of 20 sq km within the seed capital area, along the Krishna riverfront. The work had not gathered the required pace in the start-up area and other basic formalities were not completed.

The project spread over 684 ha was to be developed in phases over 10-15 years.

Despite the setback due to the closure of the project, Singapore companies will remain interested in opportunities in the state and other states because of the size and potential of the market. However, the project has cost the Singapore consortium a few million dollars, but the closure did not impact their investment plans in the country.

A few months ago, the World Bank, too, had pulled out of a proposed development project in the Capital Region.


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