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Start-up area development for capital Amaravati terminated

Singapore Amaravati Investment Holdings-formed Amaravati Development Partners andh Amaravati Development Corporation will develop about 1,691 acres of start-up area in three phases.

Published: 12th November 2019 03:45 AM  |   Last Updated: 12th November 2019 03:45 AM   |  A+A-

Startups

Representational image (Illustration | Amit Bandre)

By Express News Service

VIJAYAWADA:  Following Cabinet’s decision to terminate the agreement with Singapore Consortium for the development of the start-up area in 6.84 km of the greenfield capital city Amaravati, the State government on Monday issued orders asking the Andhra Pradesh Capital Region Development Authority not to proceed further on the project.

It gave in principle approval to wind up Amaravati Development Partners Private Limited (ADP) by voluntary liquidation on mutual consent basis between the shareholders of ADP  -- ADCL (Amaravati Development Corporation Limited) and SAIH (Singapore Amaravati Investment Holdings Pvt Ltd) -- and to authorise the officials concerned to take consequential action in the matter.

SAIH formed ADP with ADCL to develop about 1,691 acres of start-up area in three phases.While SAIH owns  58 per cent stake in the ADP, the ADCL has 42 per cent stake. The start-up area is aimed at kickstarting the economic activity in the new capital. 

GO issued terminating Amaravati start-up area

The decision was taken after the Commissioner of APCRDA informed that there was no intended development in the project of development of start-up area despite the signing of CADA (Concession and Development Agreement) and SHA (Shareholder Agreement)  on June 7, 2019, and also completion of conditions precedent as per clause 4.3 of CADA from the State government to the extent possible.  Further, the objective of the concept of start-up area did not serve its intended purpose since the GPA was not yet signed by the ADP, he added. 

The CRDA Commissioner was authorised to finalise the draft termination agreement of CADA and SHA in consultation with the shareholders of ADP and execute it on behalf of the government after obtaining necessary approval for final termination of agreement.



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