AP inks pacts with Singapore consortium to kickstart startup

Pushing the first major real estate venture in Andhra Pradesh's new capital city Amaravati a step further,the state government today inked two agreements with the Singapore consortium to kickstart the long-delayed startup area development project.

Singapore's Minister for Information and Communications S Iswaran promised on the occasion that in six months from now, there would be "significant progress on ground" in the startup area development.

Amaravati Development Corporation and Singapore Amaravati Investment Holdings Limited which together constitute the Amaravati Development Partners (ADP), a special purpose vehicle for the startup area development signed the Concession Agreement and Development Agreement (CADA) and the Shareholders Agreement for the development of 6.84 sq km area (1691 acres) in three phases over the next 15 years.

The Singapore consortium will have 52 per cent and ADC 48 per cent stake in ADP, which will take up development projects in 656 acres in the first phase in the next five years.

On May 15 last year, the state government handed over the Letter of Award for development of the startup area to the Singapore consortium of Ascendas-Singbridge and Sembcorp Development after it was chosen as the master developer through the 'Swiss Challenge method.'
Speaking about the delay in execution of the project, the Singapore minister said: "While there are many visions and plans that we have so far announced, to get them executed, we need these legal entities and the contracts to be properly secured. That has taken some time."