The Andhra Pradesh government has cancelled an agreement with a consortium of Singaporean compes for the development of Amaravati capital city startup area project.
Amaravati Development Corporation (ADC) and Singapore Amaravati Investments Holdings (SAIH) had formed a joint venture called Amaravati Development Partners to develop a startup area of 6.84 sq km in Amaravati capital region when the earlier Telugu Desam Party (TDP) government was in power.
"The government has approved to refrain from proceeding further in the Startup Area Development Project of 6.84 sq km and in-principle approval to wind up Amaravati Development Partners by voluntary liquidation on a mutual consent basis between the shareholders," said the order issued on Monday.
The Andhra Pradesh Capital Region Development Authority (APCRDA) Commissioner has concluded that the objective of startup area has not served its intended purpose. Accordingly, partner compes have been asked to withdraw their share capital.
The Singapore government also issued a statement saying that the decision was mutual but added that it had cost the consortium compes several million dollars.
"The Singapore consortium compes have stated that the project cost them a few million dollars and that its closure does not impact their investment plans in India," said Minister-in-charge of Trade Relations S Iswaran.
He added: "Singapore compes remain interested in opportunities in Andhra Pradesh and other states because of the size and potential of the market."
( With inputs from ANI )