AP starts selection process for master developer of Amaravati

Bidders will have to compete with a proposal submitted by a consortium of three Singapore companies in a Swiss Challenge approach

Andhra Pradesh Capital Region Development Authority(APCRDA), the government nodal agency constituted for the upcoming green field capital city 'Amaravati', has invited competing counter proposals for the process of selection of a master developer.

The prospective bidders will have to compete with a proposal submitted by a consortium of three Singapore companies for the development of 6.84 km of start-up area in the proposed seed capital in a Swiss Challenge approach adopted by the government.

On July 4, 2016 the state government had endorsed the initial proposal submitted by Singaporean consortium of Ascendas-Singbridge Pte. Limited, and Sembcorp Development Limited, besides issuing the guidelines for the selection of the bidder.

The offer of gross revenue share to the government will be the the sole bidding parameter, as per the July 4 orders.

The government has devised a model under which a private master developer in partnership with the government will bring in private investors for building various components of the seed capital through sale of developed plots meant for public and commercial purposes.

The Capital City Development and Management Corporation Limited (CCDMCL), a government entity, will enter into a joint venture agreement with the successful bidder. September 1, 2016 is fixed as the last date for submission of the counter bids.

The state government has guaranteed a budgetary provision of Rs 5,500 crore to CCDMCL to provide external infrastructure within the time limits and also its consequential financial implication in case of delay in implementation of infrastructure.