Yesterday, the Andhra Pradesh government signed a contract with Sembcorp Development Ltd and Ascendas-Singbridge Pvt Ltd, both Singapore based firms, appointing them as the master developers of the start-up hub that is planned to come up in the new capital city of Amaravati. This project will be spread across an area of 1691 acres.
Comprising of three phases and with a budget of INR528 crores, it has been estimated that the project will be completed in 15 years time.
Amaravati Development Partner (ADP) will be formed in collaboration with Amaravati Development Corporation (ADC) and the two firms, Ascendas-Singbridge and Sembcorp. The development of the start-up area that will be built across 900 acres of Amaravati’s Government Core area will be undertaken by ADP. A high level joint implementation steering committee (JISC) will also be established to speed up the completion and implementation of the project.
Expectations are rife that the startup area is what will bring about the initial activities in the Amaravati city while also attracting investors and residents. The AP government has impressive plans to develop the new capital city into one that is perfect for residential, business and commercial purposes.
The green field project includes infrastructural plans that will develop the city in such a way that it not only offers catalytic development for the start-up hub but is also fit for commercial, business and residential uses.
The Singapore Minister of Trade and Industry, S Iswaran and Andhra Pradesh CM N Chandra Babu Naidu were present at the occasion when the Memorandum of Understanding (MoU) was signed between the two countries yesterday.
Sources revealed that Iswaran and Naidu will be co-chairpersons of the JISC. A joint implementation working committee (JIWC) will also be formed and will comprise of the higher officials of AP and Singapore governments.
The consortium from Singapore will have an equity participation of INR 306crores (amounting to 58%) in ADP whereas ADC will have an equity participation of INR 222 crores (amounting to 42%).
CM Chandrababu Naidu revealed that nine diverse cities will be developed in Amaravati to offer the citizens a “walk to work” atmosphere.
1691acres of land will be developed in three phases by ADP in a span of 15 years. The development of the next phase will commence only after 70% of the developed area is sold. For the first phase, the reserve price of land has been fixed at INR 4crores/acre. The reserve prices for the next two phases will be decided by the AP government and the ADP.