Centre behind Singapore's exit from Amaravati Startup Area Development project?
VIJAYAWADA: While both the State and the Singapore governments announced that the Amaravati Startup Area Development Project was shelved with mutual consent, it is learnt the consensus was reached only after the Centre’s intervention.
Even though the agreement between Singapore Consortium and the State government had a clause for international arbitration in London, the stakeholders decided to refrain from complicating the process, especially in wake of the Centre’s intervention.
After the change of guard in Andhra Pradesh in May this year, the Singapore Consortium waited for a clarity from the new government, which had sent ‘feelers’ that it may not go ahead with the master plan developed by the island nation’s companies because of the change in priorities.
With the project not taking off for over two years after signing a pact in 2017, the Singapore Companies weighed in its options.
One of the major reasons for the Singapore companies to not take up the works, despite several months elapsing, was that the land allotted to them by the previous TDP government was right on Krishna River bed where any kind of development is prohibited.
The companies then sought an alternative option and the State agreed to provide it. But, with political scenario changing, the companies did not begin the works.
In this context, the Singapore government is learnt to have requested the Centre to facilitate an amicable exit. Following this, the Centre, keeping the bilateral ties in mind, has reportedly prevailed on the State government to let the closure be done on agreeable terms to both the parties.
Key Union ministers and a delegation from the State government shared the same platform in Singapore during the India Singapore Business Summit in September this year. Following this, the State cabinet, on October 30, decided to terminate the agreement with the Singapore Consortium after due deliberations. On November 11, an order was issued in this regard.