The Singapore government released an official statement on 11 November saying the Andhra Pradesh government’s decision to close the Amaravati Capital City Start-Up Area project has been considered. The statement specified that the Government of Andhra Pradesh and the Singapore Consortium consisting of Ascendas Singbridge Pte Ltd and Sembcorp Development Ltd. have decided to stop the project through mutual consent.
In an official press release issued on Tuesday, the Minister-in-charge of Trade Relations S Iswaran stated, “The Singapore Consortium was appointed by the Government of Andhra Pradesh in 2017 to help master develop the 6.84 square kilometer Start-Up Area of 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.”
The statement said that companies recognise such risks when venturing into any overseas market and factor them while making investment decisions. Further, it added, “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.”
The press release also stated that Singapore companies continue to be interested in opportunities in Andhra Pradesh and other Indian states owing to the size and potential of the market. “Our economic agencies will continue to help our companies internationalise by exploring opportunities in India and other overseas markets,” read the release.
In October this year, the Andhra Pradesh Cabinet decided to terminate the Amaravati Start-Up Area Development Project, thereby also ending the partnership with Singapore Consortium. The Information and Public Relations Minister Perni Venkata Ramaiah (Nani) had announced the government’s decision.