VIJAYAWADA: A day after the Andhra Pradesh State government issued orders terminating the Start-up area project in Amaravati, Singapore's in-charge Minister of Trade Relations S Iswaran issued a statement on Tuesday stating that the decision by the Government of Andhra Pradesh (GoAP) to close the Amaravati Capital City Start-Up Area project is based on mutual consent between the GoAP and the Singapore consortium.
"The Singapore government notes the decision by the GoAP to close the Amaravati Capital City Start-Up Area project via a Government Order dated 11 November 2019. The closure is based on mutual consent between the GoAP and the Singapore Consortium (comprising Ascendas Singbridge Pte Ltd (now part of CapitaLand Group) and Sembcorp Development Ltd),'' a release by Ministry of Trade and Industry, Singapore said.
Singapore's Minister-in-Charge of Trade Relations S Iswaran, in the statement, said, "The Singapore Consortium was appointed by the GoAP in 2017 to help master develop the 6.84 km Start Up area os its new capital city Amaravati. We note that the newly elected Government of Andhra Pradesh has decided not to proceed with the Start-Up Area given its other priorities for the state. Companies recognise such risks when venturing into any overseas market and factor them into their investment decisions. In this instance, the Singapore Consortium companies have stated that the project has cost them a few million dollars, and that its closure does not impact their investment plans in India.''
Iswaran added that Singapore companies remain interested in opportunities in Andhra Pradesh and other Indian states because of the size and potential of the market. "Our economic agencies will continue to held our companies internationalise by exploring opportunities in India and other overseas markets,'' Iswaran said.
It may be recalled that the AP state government issued a GO on Monday stating that it would refrain from proceeding further in the start-up area development project of 6.84 sq km.
The decision to terminate the agreement with the Singapore consortium was taken in the October 30 meeting of the State Cabinet held under the chairmanship of Chief Minister YS Jagan Mohan Reddy.