HYDERABAD: In the last but one step in the process of awarding development contract of “startup area” of seed capital in Amaravati to the Singapore consortium of Ascendas-Singbridge and Sembcorp companies, the state government on Monday gave its nod for APCRDA to invite counter bids to the proposal submitted by the Singapore firms under Swiss Challenge mode.
Even though eyebrows are being raised over the state’s proposal to give 58 per cent stake to Singapore firms while retaining only 42 per cent share with the Capital City Development and Management Corporation Limited (CCDMCL), which was formed for the development of capital city to together “develop” the project, the government authorised the CRDA to adopt the same formula in finalising the final bidder.
“CRDA will proceed to invite the competing counter challenge proposal under Swiss Challenge for the development of startup area of 1,691 acres (in phases) in Seed Capital. Other prospective developers would be asked to present counter bids. If the latter is lower, the first bidder will be asked to submit another bid again. If the first bidder comes up with lower bid, then he gets the right or if he fails, the one with lower bid gets the project,” said officials.
However, as APCRDA has already opined that under the APIDE Act 2001 the Original Project Proponent (OPP) is capable of undertaking a project of this scale and scope, sources said that in all likelihood the contract would be awarded to the Singapore firms. Besides, even if the challenged bids are lower than those of the Singapore firms’, final decision will rest with the government, sources added.
Once the final bidder is finalised, the CCDMCL will enter into a joint venture agreement with the bidder.
Interestingly, the government will spend ` 5,500 crore on providing external infrastructure such as roads, water and electricity around the proposed area where the Singapore firms will construct commercial complexes but not government buildings. “The state will also bear the consequential financial implications in case of delay in the implementation of the project,” the sources said.
In fact, as per the proposal, the Singapore firms will develop an area of 6.84 sq km within Seed Capital Area under joint development with CRDA and joint venture with CCDMC in first phase.
The Singapore consortium had submitted a proposal for development of Seed Capital Area of 16.9 sq. km under Swiss Challenge Method.
“The government has authorised the commissioner of APCRDA to obtain legal opinion on compliance with APIDE Act, 2001 and Supreme court judgment during the bid process and invite counter proposal under Swiss Challenge,” Ajay Jain, principal secretary, said.