VIJAYAWADA: The launch of construction works in the capital moved a step ahead with the council of ministers approving the guidelines for the formation of Amaravati Development Partners (ADP) Pvt Ltd and issuing a government guarantee to raise Rs 13,000 crore through Masala bonds and other means.
The officials said that the Cabinet also ratified the Concession And Draft Agreement (CADA), which will be signed by the Singapore Consortium to begin the development of start-up area in 6.84 sq km in Amaravati.
“Now that the government has approved the draft agreement, the Singapore Consortium, which consists of Ascendas-Singbridge and Sembcorp Development, will enter into a pact with Amaravati Development Corporation Ltd. Both of them will form ADP Pvt Ltd. We are expecting the signing to happen in a month’s time,” a senior official explained.
The chairperson and managing director of ADCL D Lakshmi Parthasarathy is in Singapore to finalise the plans. As the works pertaining to roads leading to the Start-up area in Mandadam are expected to be wound up by March, the Singapore Consortium is likely to launch the works in March or April.
The CRDA, which estimated the first phase of Amaravati to cost `29,000 crore, will now tap `20,000 crore from Masala bonds and another `10,800 crore from the hybrid annuity model.
“With this, we can launch the development of returnable plots in five of the 13 zones which are to be given to the farmers who gave lands under the Land Pooling Scheme (LPS). We have already called for tenders,” the official added.
Sources said that the CRDA plans to avail the funds immediately after the fresh fiscal year (FY 2018-19) begins.