The Andhra Pradesh government has reportedly withdrawn from the Amaravati Capital City Startup Area project following mutual consent, said Singapore government in a press release issued on Tuesday.
The development is reportedly due to the change of government after the assembly elections in Andhra Pradesh in May this year. Despite the closure of the startup area project, Singapore companies are still interested to invest in Andhra Pradesh and other states, the release stated.
"Singapore government notes the decision by the government of Andhra Pradesh to close the Amaravati Capital City Startup Area project via a government order dated 11 November 2019," the release stated.
Singapore government said that the closure is based on mutual consent between the Andhra Pradesh government and the Singapore Consortium (comprising Ascendas Singbridge Pte Ltd, now part of CapitaLand Group, and Sembcorp Development Ltd).
Minister-in-charge of trade relations S Iswaran said, “The Singapore Consortium was appointed by the government of Andhra Pradesh in 2017 to help master develop the 6.84 km2 Startup Area of its new capital city Amaravati. We note that the newly elected government of Andhra Pradesh has decided not to proceed with the Startup Area given its other priorities for the state."
Ishwaran said that companies recognised such risks when venturing into any overseas market and factor them into their investment decisions. 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.
Singapore companies remain interested in opportunities in Andhra Pradesh and other Indian states because of the size and potential of the market, he said.
"Our economic agencies will continue to help our companies internationalise by exploring opportunities in India and other overseas
markets,” he said.
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Updated Date: Nov 12, 2019 16:56:19 IST