VIJAYAWADA: Finance Minister Buggana Rajendranath Reddy has said that the decision to shelve the development of Amaravati start-up area project was taken after the government found that it was not financially feasible.
Following this, the state government and the Singapore Consortium mutually agreed to call it off, he added.
In a statement on Wednesday, the Finance Minister said the project involved huge investment, which did not match the proposed development.
He explained that a start-up area was nothing but a business district within Amaravati capital city. The capital region is about one lakh acres within which there is a capital city.
It is proposed to be 217 sq km, which is twice the size of Mumbai including Navi Mumbai and suburbs, he noted.
“The proposed start-up area was to be developed in 1,691 acres. During internal deliberations, it was realised that development of the one lakh acres required approximately Rs 2 lakh crore, which is almost the size of the State annual budget. So, even if the 1,691 acres is developed, there is no meaning as the remaining of the one lakh acres would take decades to be developed,” he observed.
“Neither the time nor finances of the State permit this sort of development. The government of AP also has realised the need for comprehensive and holistic development of the state like infrastructure development of health, industries, employment to youth. In this context, it was decided to wind up the project,” the minister explained.
Later in the day, Municipal Administration and Urban Development minister Botcha Satyanarayana responded to the charges of TDP, which alleged that the YSRC government was responsible for the exit of Singapore Consortium.
In a press meet at the Secretariat, he slammed the Opposition leaders for making baseless allegations and claimed that several investors backed out of investing in Amaravati when Chandrababu Naidu was the Chief Minister.
“The Start-up area development was terminated on the basis of mutual consent between the State and the Singapore companies. A few firms had dropped their plans when Naidu was ruling. If Naidu’s claims of development in the last five years, which we are allegedly undoing now, are indeed true, why did the people give his party only 23 seats? Can the TDP supremo answer?” he sought to know.
He came down heavily on TDP and Jana Sena for making a fuss regarding introduction of English medium in governments schools and sand availability.
The minister termed Naidu’s deeksha a fake one and alleged that the Opposition leaders were attempting to politicise the issue.