Andhra Pradesh Chief Minister N Chandrababu Naidu wants at least some visible progress on the ground in the new capital Amaravati in the next two years so that he can face the voters in the 2019 elections.
He today asked a Singapore consortium to create "at least some infrastructure" in the next two years in the so- called start-up area in Amaravati so that he could "show something" to the voters in the 2019 polls.
"Amaravati is Lord India's capital. So, you will be building heaven over here. Build something up in the next two years so that I can show it to the voters and face elections," Chandrababu said after handing over a "Letter of Award" under the Swiss Challenge method to the Singapore consortium.
Singapore Minister for Trade and Industry S Iswaran and a number of delegates from the city-state attended the event.
"In Singapore, you are in power for the last 40 years. Here, I have to face elections every five years. So, if I don't show any development, I will be out," the Chief Minister quipped.
This is the first major real estate venture that the state government has undertaken in Amaravati under the Public Private Partnership mode and selected the Singapore consortium of Ascendas-Singbridge and Sembcorp Development through the controversial Swiss Challenge method as the Master Developer.
Though initially the government announced that a 20-sq km seed capital area, including the government city in 900 acres, will be developed under the Swiss Challenge method, the proposal was subsequently cut down to just the start-up area because of the legal hassles involved.
The consortium will partner with Amaravati Development Corporation (ADC), a government entity, and form a special purpose vehicle, Amaravati Development Partner (ADP), for executing the project in 6.84 sq km area (1,691 acres).
While the Singapore consortium will put in Rs 306 crore as its equity (58 per cent), the ADC will invest Rs 222 crore (42 per cent).
The ADP will spend Rs 2118 crore for creation of basic infrastructure like roads, water supply, drainage and electricity and subsequently transfer the infrastructure to the Capital Region Development Authority (CRDA).
In the first phase, real estate will be developed in 656 acres in the start-up area and 8.07 lakh sq ft of building space will be created in three years, a CRDA release said.
Development of the start-up area is expected to spur wide economic activity as the Singapore consortium will help attract foreign investment that will enable job creation.
The CRDA said 1.25 lakh families are expected to settle in the new capital in the next 15 years as 2.50 lakh jobs will be created.
The start-up area, once developed, is expected to contribute 1.15 lakh crore to the state's gross domestic product and generate a revenue of Rs 8,000 crore to Rs 10,000 crore to the government in different taxes.
The consortium will also try to get industrial and economic clusters set up in the start-up area.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)