VIJAYAWADA: The state government has approved the draft termination of Concession and Development Agreement (CADA) and Shareholder’s Agreement (SHA) signed by Amaravati Development Corporation Ltd (ADCL) with Singapore Consortium for the development of the ‘start-up’ area in Amaravati.
The government has also authorised the officials concerned to execute the termination agreement and initiate the liquidation process.
Municipal Administration and Urban Development (MAUD) secretary J Syamala Rao issued an order (MS 204) to this effect on Wednesday.
It is learnt that the order was issued after the state cabinet, in its last meeting on November 27, agreed to approve the draft termination agreements.
It maybe be recalled that Singapore Consortium and ADCL formed into Amaravati Development Partners in 2017 with 58:42 stake for the development of 1,691 acres start-up area in Amaravati.
In 2018, about Rs 124 crore was infused as the capital by both the partners to launch the works and about Rs 18 crore was spent as well. Of the capital infused, ADCL pumped in about Rs 52.09 crore.
However, after the change of guard in 2019 the state government decided to terminate the project on mutual consent basis.
After due process, the ADP initiated the process of termination and also held a board meeting recently to formally conclude the process. The same was intimated to the government in the last week of November.
Following the board’s resolution and the cabinet’s decision, the government issued orders for the execution of termination. ADCL is expected to get around Rs 45 crore to Rs 50 crore after the liquidation process.