Singapore Government on Tuesday announced that it has agreed with the decision by the Government of Andhra Pradesh to close the Amaravati Capital City Start-Up Area project through a Government Order dated 11 November 2019. It said the closure is based on mutual consent between the Singapore Consortium comprising Ascendas and Sembcorp and Andhra Pradesh Government.
The Singapore Government said that the Government of Andhra Pradesh had backed out from the proposal as the priorities of the new government changed. And the companies involved have already spent a few million dollars on the project.
This will mean that there is no risk of arbitration by the Singapore companies. The Singapore Consortium was appointed by the government of Andhra Pradesh in 2017 to master develop 6.84 Kilometers Startup area of Amaravati. However, the project did not take off as the companies played a waiting game until the elections are over.
Scrapping this project will definitely send wrong signals to the international investors.
