Published: Tue, May 16, 2017
Money | By Armando Alvarado

Ascendas-Sembcor to co-develop start-up area in Amaravati

Ascendas-Sembcor to co-develop start-up area in Amaravati

It may be recalled that the TDP government has ratified the proposals submitted by the Singapore Consortium for the development of the start-up area of the capital city under the Swiss Challenge method.

Singapore also signed a Memorandum of Understanding with Andhra Pradesh for greater collaboration between the two cities in economic development and sharing of expertise in areas such as urban governance, security and education.

The Start-up Area lies within the 20-square kilometer Seed Development Area of Amaravati City, along with the River Krishna waterfront.

Mr Neil McGregor, Group President and Chief Executive Officer of Sembcorp Industries, said: "We are very pleased to be presented the opportunity to participate in the development of a brand-new capital city for Andhra Pradesh".

The state government is confident that the start-up area will kick-start the economy in Amaravati and will trigger the city as the global destination of people, investments and jobs.

As per the Hindu report, the government is proposing to develop 1,691 acres in three phases over the next 15 years. And the first phase will come up in 600 acres and total area is 1691 acres.

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Singapore consortium will have an equity participation of Rs 306 crore (58 per cent) while Amaravati Development Corporation (ADC) will have Rs 222 crore participation (42 per cent). "We created history by pooling 33,000 acres land worth almost 40,000 crore before". A committee consisting of the ADP and the government of Andhra Pradesh will decide the same for the next phases, said the statement.

Apart from this, the state will also launch an application facilitating the sale of plots as a part of the land collection for the development.

"From the bilateral perspective between India and Singapore, we have elevated the relationship in recent years to a strategic partnership involving several dimensions and one of those is in terms of contributions in urban solutions and capacity building so this project would be one of the most significant by far, both in terms of scale and potential for greater mutual partnership and contributions by Singapore towards India's broader development objectives", he added.

The 15-year Greenfield project is expected to bring in resident population of 1.25 lakh families and create 2.50 lakh jobs.

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.

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