The consortium of Singapore companies have come up with a fresh proposal for the development in Amaravati. According to that, the consortium will develop 1691 acres in Amaravati region and will begin works in 200 acres. They will be taking up the construction of iconic towers in this 200 acres. In the second phase, 600 acres will be developed and in third phase, remaining 1091 acres.
The government will have to create basic infrastructure in the area to be developed. The consortium will give some time to the government to do that. If that is delayed, automatically the Singapore development will also get delayed. The government will also have to give compensation to the consortium in case of delay.
The state government is planning to impose similar clause. Singapore consortium will have to pay compensation if the development is delayed. In this proposal, Singapore consortium will have 58% share. AP will have remaining. AP’s equity will be the land. The state government proposed 99 years to get returns on their investment. The Singapore consortium wants it early. In case of any disputes, London will be the place of arbitration. The proposal is put under Swiss Challenge method.
