Andhra Pradesh's new capital Amaravati City: Final masterplan handed over
Final piece of six-month process to design state's new capital city given to chief minister
By Nirmala Ganapathy, India Bureau Chief, The Straits Times, 21 Jul 2015
Capping a six-month-long process to design Andhra Pradesh's new capital city, Singapore has handed over the masterplan to develop the heart of Amaravati in southern India.
The seed development masterplan, covering a 16.9 sq km area, is the final of three masterplans, including one for the entire city and another for the capital region handed over in March and May respectively, created by Surbana Jurong.
Final piece of six-month process to design state's new capital city given to chief minister
By Nirmala Ganapathy, India Bureau Chief, The Straits Times, 21 Jul 2015
The seed development masterplan, covering a 16.9 sq km area, is the final of three masterplans, including one for the entire city and another for the capital region handed over in March and May respectively, created by Surbana Jurong.
This third masterplan includes government buildings and the Central Business District.
The project, which opens up business opportunities for Singaporean companies, is one of the largest infrastructure projects in India.
"What our planners are trying to do is to capture a vision and the aspirations of the people of Andhra Pradesh and, at the same time, create a foundation for a city which is vibrant, liveable and has good infrastructure, good economic development," Mr S. Iswaran, Second Minister for Home Affairs and Trade and Industry, said yesterday, after handing over the masterplan to Andhra Pradesh's Chief Minister N. Chandrababu Naidu.
"The next important stage is the development stage when plans are turned into reality.
"We are looking forward to continuing our partnership with Andhra," said Mr Iswaran.
Amaravati, named after an ancient Buddhist city, is being created from the ground up in the Guntur Vijayawada area after Andhra Pradesh lost its capital Hyderabad to the new state of Telangana, created last year. Geographically, Hyderabad falls under the new state.
Mr Naidu is seeking to lay the foundation stone, marking the beginning of construction, for the new city on Oct 22 and is looking at completing the first of five phases of the seed development masterplan that includes government buildings, by 2018 - ahead of state elections in 2019.
It is estimated that 300,000 people will be living in the city centre, which has been designed based on the principles of Vaastu - an ancient science of architecture.Mr Naidu is seeking to lay the foundation stone, marking the beginning of construction, for the new city on Oct 22 and is looking at completing the first of five phases of the seed development masterplan that includes government buildings, by 2018 - ahead of state elections in 2019.
Ahead of that, the Andhra Pradesh government will choose an Amaravati Development Partner to oversee the construction through a bidding process.
Urban planning is currently in focus in India with Prime Minister Narendra Modi launching an initiative to create 100 modern cities to cope with an urban population expected to grow from 31 per cent to 40 per cent by 2030.
Urban planning is currently in focus in India with Prime Minister Narendra Modi launching an initiative to create 100 modern cities to cope with an urban population expected to grow from 31 per cent to 40 per cent by 2030.
Mr Teo Eng Cheong , chief executive of International Enterprise Singapore, said: "This masterplan demonstrates Singapore's capabilities and paves the way for future partnerships in India, across sectors such as urban planning, infrastructure and supporting services."
#Amaravati - The People's Capital of #AndhraPradesh 2050
Posted by Surbana International Consultants Pte Ltd on Monday, July 20, 2015
Today, Singapore delivered the final master plan for Andhra Pradesh’s new capital city, Amaravati, under a MoU signed...
Posted by Surbana International Consultants Pte Ltd on Monday, July 20, 2015
Singapore firms eye project to build new capital city in India
Ascendas-Singbridge, Sembcorp may submit bids to build new capital city in India: Minister
By Chong Koh Ping, The Straits Times, 21 Jul 2015
Ascendas-Singbridge, Sembcorp may submit bids to build new capital city in India: Minister
By Chong Koh Ping, The Straits Times, 21 Jul 2015
At least two Singaporean township developers are likely to bid for the project to help build a new capital city for the southern Indian state of Andhra Pradesh.
For the third phase, the project covers about 17 sq km in the centre of the new capital Amaravati, which is being built on the banks of the Krishna River.
For the third phase, the project covers about 17 sq km in the centre of the new capital Amaravati, which is being built on the banks of the Krishna River.
Singapore submitted the third and final master plan for the city to the Andhra Pradesh government yesterday. The master plan was designed by Singapore's Surbana Jurong. It sets out the land use and infrastructure plans for a 16.9 sq km start-up area within the 7,000 sq km capital region.
The first part was delivered in March while the second was delivered in May. The city centre will be home to government buildings, including the legislative, executive and judiciary branches of the Andhra Pradesh government.
It will also include a mix of commercial and residential areas to cater to the employment, housing, social, cultural and recreational needs of the residents. By 2050, Amaravati is expected to be home to over 10 million people.
"Singapore is honoured to have been invited by the Andhra Pradesh government to master plan and develop its new capital Amaravati," said Mr S. Iswaran, Minister in the Prime Minister's Office and Second Minister for Trade and Industry, in Andhra Pradesh yesterday. He was there to deliver the plan to the state's Chief Minister Chandrababu Naidu.
Mr Iswaran said the master plans have been completed on schedule and Singapore is keen to help the city implement and develop them.
"This collaboration has also opened up more business and investment opportunities in Andhra Pradesh and India for Singapore companies," he added.
With the completion of the development blueprint, the next step is for the Andhra Pradesh government to select a master developer.
In an interview with the Singapore media last week, Mr Iswaran said Singaporean township developers Ascendas-Singbridge and Sembcorp Development have both indicated interest in bidding for the project.
Mr Iswaran said either of these firms stand a good chance of clinching the project as they have good track records in township development projects in countries such as China and Vietnam, and both are familiar with India.
Sembcorp Development chief executive Kelvin Teo said: "For over 20 years, we have been at the forefront of many government-supported projects. We have conceptualised 13 large-scale integrated urban developments covering 11,000ha of land across Asia, and invested in more than 3,300MW of thermal and renewable power assets across seven Indian states, including Andhra Pradesh."
Sembcorp Development chief executive Kelvin Teo said: "For over 20 years, we have been at the forefront of many government-supported projects. We have conceptualised 13 large-scale integrated urban developments covering 11,000ha of land across Asia, and invested in more than 3,300MW of thermal and renewable power assets across seven Indian states, including Andhra Pradesh."
Ascendas-Singbridge deputy chief executive Manohar Khiatani, who is also president and chief executive of Ascendas, said India has always been a key market for Ascendas-Singbridge. Andhra Pradesh is an exciting chance for the firm to deepen its presence in India, he added.
"We will study the master plan... when it is available, to identify areas where we could potentially participate in and contribute our expertise in urban development."
Singapore's involvement in the Amaravati's development will help create business opportunities for local firms in areas such as manufacturing and logistics, said Mr Iswaran.
The project also has significance for bilateral ties as it is an example of how Singapore can help India build sustainable, smart cities, he added.
Mr Iswaran said either of these firms stand a good chance of clinching the project as they have good track records in township development projects in countries such as China and Vietnam, and both are familiar with India.
Sembcorp Development chief executive Kelvin Teo said: ''For over 20 years, we have been at the forefront of many government-supported projects.We have conceptualised 13 large-scale integrated urban developments covering 11,000ha of land across Asia, and invested in more than 3,300MW of thermal and renewable power assets across seven Indian states, including Andhra Pradesh.''
Ascendas-Singbridge deputy chief executive Manohar Khiatani, who is also president and chief executive of Ascendas, said India has always been a key market for Ascendas-Singbridge. Andhra Pradesh is an exciting chance for the firm to deepen its presence in India,he added.
''We will study the master plan... when it is available, to identify areas where we could potentially participate in and contribute our expertise in urban development.''
Singapore's involvement in the Amaravati's development will help create business opportunities for local firms in areas such as manufacturing and logistics, said Mr Iswaran.
The project also has significance for bilateral ties as it is an example of how Singapore can help India build sustainable, smartcities, he added.
* Singapore group to build new Indian city's core
Ascendas-Sembcorp consortium is master developer for Andhra Pradesh capital's start-up site
By Nirmala Ganapathy, India Bureau Chief In Vijayawada, The Straits Times, 16 May 2017
A Singapore consortium will develop the commercial core of Amaravati, the new capital city of Andhra Pradesh, deepening the Republic's footprint in the fast-growing economy where developing urban infrastructure is a government priority.
The consortium of Ascendas-Singbridge and Sembcorp Development, which had jointly bid on the project, was announced yesterday as the master developer for a 6.84 sq km stretch called the start-up area.
It was given the letter of award in a ceremony witnessed by Singapore's Minister for Trade and Industry (Industry) S. Iswaran and Andhra Pradesh Chief Minister Chandrababu Naidu.
"This start-up area will certainly be the heart of Amaravati," said Mr Iswaran, who is in India on a three-day visit.
He added: "This is a momentous occasion... The partners will build the required infrastructure and attract developers and companies, both Indian and international, to create high-quality residential, commercial and public facilities."
He also attended a ceremony yesterday to lay the foundation stone for the start-up site in Amaravati.
The capital city and region - spread across 8,603 sq km, or 10 times the size of Singapore - is being built in the Guntur Vijayawada region. The capital city area currently consists largely of empty farm land interspersed with villages alongside the Krishna river. It is estimated that 10 million people will be living in Amaravati by 2050.
The state is building a capital city from scratch because it lost its existing capital of Hyderabad to Telangana, a new state that was carved out of Andhra Pradesh in 2014. It was given the option of sharing Hyderabad for 10 years, but Mr Naidu has already moved government offices and the assembly from Hyderabad to Amaravati. The plan is to develop the capital city, including the start-up areas, in multiple phases over a period of 15 to 20 years.
Still, Mr Naidu, who will face elections in two years, urged the Singaporean firms to work fast.
"I requested you here to speed up work and before next elections, show some results. I have to show progress," he said.
In India, urban infrastructure is a pressing priority as more and more Indians move to cities in search of jobs and a better standard of life.
Indian Prime Minister Narendra Modi has unrolled a plan to modernise 100 existing cities, and has sought expertise from other countries, including Singapore.
While Amaravati, a greenfield project, is not on that list, it is one of the most ambitious urban infrastructure projects right now. Its challenges include securing continuing finances for a project estimated to take up to two decades to complete. Some initial estimates put the cost of the project at over one trillion rupees (S$22 billion).
The masterplan for the capital city was completed in six months' time in 2015, by Singapore's Surbana Jurong. But the Andhra Pradesh government was unable to move to the next stage of appointing a master developer as it was hit by legal troubles, ranging from firms filing cases against the bidding process to farmers resisting the land-pooling process.
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Singapore delivers Final Master Plan for Andhra Pradesh’s New Capital City -20 Jul 2015
Second Minister S Iswaran was in Andhra Pradesh last Monday to hand over the Seed Development master plan for the...
Posted by Ministry of Trade & Industry on Monday, July 27, 2015
* Singapore group to build new Indian city's core
Ascendas-Sembcorp consortium is master developer for Andhra Pradesh capital's start-up site
By Nirmala Ganapathy, India Bureau Chief In Vijayawada, The Straits Times, 16 May 2017
The consortium of Ascendas-Singbridge and Sembcorp Development, which had jointly bid on the project, was announced yesterday as the master developer for a 6.84 sq km stretch called the start-up area.
It was given the letter of award in a ceremony witnessed by Singapore's Minister for Trade and Industry (Industry) S. Iswaran and Andhra Pradesh Chief Minister Chandrababu Naidu.
"This start-up area will certainly be the heart of Amaravati," said Mr Iswaran, who is in India on a three-day visit.
He added: "This is a momentous occasion... The partners will build the required infrastructure and attract developers and companies, both Indian and international, to create high-quality residential, commercial and public facilities."
He also attended a ceremony yesterday to lay the foundation stone for the start-up site in Amaravati.
The capital city and region - spread across 8,603 sq km, or 10 times the size of Singapore - is being built in the Guntur Vijayawada region. The capital city area currently consists largely of empty farm land interspersed with villages alongside the Krishna river. It is estimated that 10 million people will be living in Amaravati by 2050.
The state is building a capital city from scratch because it lost its existing capital of Hyderabad to Telangana, a new state that was carved out of Andhra Pradesh in 2014. It was given the option of sharing Hyderabad for 10 years, but Mr Naidu has already moved government offices and the assembly from Hyderabad to Amaravati. The plan is to develop the capital city, including the start-up areas, in multiple phases over a period of 15 to 20 years.
Still, Mr Naidu, who will face elections in two years, urged the Singaporean firms to work fast.
"I requested you here to speed up work and before next elections, show some results. I have to show progress," he said.
In India, urban infrastructure is a pressing priority as more and more Indians move to cities in search of jobs and a better standard of life.
Indian Prime Minister Narendra Modi has unrolled a plan to modernise 100 existing cities, and has sought expertise from other countries, including Singapore.
While Amaravati, a greenfield project, is not on that list, it is one of the most ambitious urban infrastructure projects right now. Its challenges include securing continuing finances for a project estimated to take up to two decades to complete. Some initial estimates put the cost of the project at over one trillion rupees (S$22 billion).
The masterplan for the capital city was completed in six months' time in 2015, by Singapore's Surbana Jurong. But the Andhra Pradesh government was unable to move to the next stage of appointing a master developer as it was hit by legal troubles, ranging from firms filing cases against the bidding process to farmers resisting the land-pooling process.
While most of the legal hurdles have been resolved, some remain, including a case in the National Green Tribunal on the ecological impact of the city.
Yet, in spite of these challenges, the master developer of the project is excited by the opportunities.
Yet, in spite of these challenges, the master developer of the project is excited by the opportunities.
Mr Neil McGregor, group president and chief executive of Sembcorp Industries, said: "It is a rare opportunity to create a city from scratch."
But he noted: "I think the challenge will be moving at a sufficient speed to develop the land and to attract the right kind of investment and businesses to the area."
** Amaravati project low priority for new Andhra Pradesh govt
Project may not be abandoned but a decision on it may yet take months, say senior officials
By Bhagyashree Garekar, Deputy Foreign Editor, The Straits Times, 10 Sep 2019
Prospects appear dire for the stalled capital city project of Amaravati, which was being developed in the southern Indian state of Andhra Pradesh with Singapore's help.
The zombie project, mothballed since the state elected Mr Jagan Mohan Reddy as its new Chief Minister in May, came up for discussion at the India Singapore Business and Innovation Summit.
India's visiting Foreign Minister Subrahmanyam Jaishankar ducked the question when asked yesterday by Singapore's Ambassador-at-large Tommy Koh if the project was "sick, very sick or dead". It was a decision for the state rather than the federal government, Mr Jaishankar said.
The state's Finance Minister Buggana Rajendranath made no mention of the proposed city, a pet project of the previous government, in his speech at the summit at the Sands Expo & Convention Centre.
In an interview with The Straits Times, he described it as something of a damp squib that did not figure high in the priorities of the agrarian state which was struggling to build an industrial base and generate revenue. "We don't have the money to build a city," Mr Rajendranath said.
"Our priority is bringing up the standard of living, providing equitable development to the entire state, providing an infrastructure for creating a manufacturing base, rather than to build a single city," he said. "You have all of these lined up against that one issue. You can have this or that."
Thus far, the involvement of Singapore firms has been relatively minor, restricted to developing a small portion as a financial district, he said.
Singapore has been involved in the project since its start in 2014, when Andhra Pradesh embarked on the venture because it lost its capital city Hyderabad to the newly created state of Telangana. Surbana Jurong submitted the city's masterplan in 2015, and a consortium of Ascendas-Singbridge and Sembcorp Development was announced in 2017 as the master developers. It was conceived to be 10 times the size of Singapore, requiring an investment of billions of dollars.
Dr P.V. Ramesh and Mr Shamsher Singh Rawat, senior officials in Mr Rajendranath's delegation, told The Straits Times that the state was keen to pitch for investors in the new sectors selected for priority development, including a greenfield international airport, four seaports, aquaculture and healthcare projects. Amaravati may not be abandoned, but a decision on it may yet take months, they said, adding that the state was in favour of developing a decentralised urban environment rather than concentrating all development in a single, large city.
In his remarks on the issue at the panel discussion, Foreign Minister Vivian Balakrishnan said the new state government, which has just completed 100 days in office, needed to consider the signal it was sending to investors while deciding on the fate of the project.
"It is the prerogative of the local government to adjust and amend its priorities from time to time, and it is the prerogative of the investors to decide whether to stay or to leave.
"What transcends such changes is the sanctity of contracts," he said.
"The government needs to consider the signal it sends to investors," he added.
Singapore has remained a highly competitive economy because it has provided a stable and predictable environment for investors, he said. "This lowers the cost of business. This encourages more investments.
"So, I would ask everyone to give time to the new government in Andhra Pradesh to sort out its priorities, then allow the private sector to make its own decisions, rationally, on commercial grounds."
*** Andhra Pradesh Amaravati project with Singapore to develop the Indian state's new capital cancelled
Decision to axe joint project with India's Andhra Pradesh state has mutual consent
By Grace Ho, Senior Political Correspondent and Rohini Mohan, India Correspondent, The Straits Times, 13 Nov 2019
The joint project between Singapore and Andhra Pradesh to develop the Indian state's new capital called Amaravati has been terminated.
Singapore's Ministry of Trade and Industry (MTI) confirmed this in a press statement yesterday, soon after the Government of Andhra Pradesh (GoAP) officially closed the project through a government order issued on Monday.
The order states that Amaravati Development Partners (ADP) - the joint company formed by Singapore firms and Amaravati Development Corporation, an Andhra Pradesh government entity - will be wound up by voluntary liquidation.
MTI said the closure is based on mutual consent between the GoAP and the Singapore consortium.
Minister-in-charge of Trade Relations S. Iswaran noted that the newly elected Andhra Pradesh government "has decided not to proceed with the start-up area, given its other priorities for the state".
"Companies recognise such risks when venturing into any overseas market and factor them into their investment decisions," he said.
Separately, Andhra Pradesh Minister for Municipal Administration and Urban Development Botsa Satyanarayana said the project was called off with mutual consent because when the state asked about work delays, it did not get "a convincing reply".
"There was no progress in the required measure and set parameters in the capital area region… The work has not begun in the desired pace in the start-up area and other basic formalities were not completed," he said yesterday.
A statement from his office said "the consortium did not undertake tangible work" in the start-up area while other institutions had built colleges. "How the state would benefit out of the project was the genuine concern we have expressed, and a satisfactory reply was not forthcoming. The government wants development and growth on a fast track, which was found wanting and has decided to close the issue," added the state minister.
In MTI's statement, Mr Iswaran said the Singapore consortium companies have stated the project has cost them a few million dollars, and its closure does not impact their investment plans in India.
Singapore companies remain interested in opportunities in Indian states because of their market size and potential, he added.
Amaravati was the pet project of the state's former chief minister Chandrababu Naidu, who had promised to model the city after Singapore, and inked two memorandums of understanding with the consortium backed by the Republic.
Ascendas-Singbridge company, now part of CapitaLand Group, and Sembcorp Development were awarded a joint venture (JV) opportunity to develop the city.
But plans were thrown out of kilter after Mr Naidu's election defeat by Mr Jagan Mohan Reddy's YSR Congress party in May.
Mr Reddy, long critical of the project, set up a committee to review everything from the land pooling system - a unique method of acquiring land from locals by offering farmers a developed plot in the future city as payment for their land - to the tenders issued for road building and housing.
In a separate announcement yesterday, Singapore Amaravati Investment Holdings (SAIH), the JV vehicle formed by Sembcorp and Ascendas-Singbridge, said it was "no longer feasible" to develop the city as originally planned.
It said: "The development of the project was envisioned to take place over 20 years in partnership with the GoAP. As the project is still at its early stages and the land in the start-up area has yet to be made available to ADP for development, costs incurred are limited to design services prior to commencement of execution works on the ground, amounting to a few million dollars."
Yesterday, a spokesman for Sembcorp would not comment on whether SAIH would recover the costs incurred, saying that a few million dollars is the anticipated expense since the liquidation process is not completed.
In September, Mr Iswaran had told Parliament that no government funds, including any subsidies or grants for investments in the state, were used for the project.
SAIH said yesterday that this latest development should not impact CapitaLand and SAIH's investment plans in India, which remains a key market for both companies.
It is also not expected to have a material impact on the earnings per share and net asset value per share of Sembcorp Industries for the financial year ending Dec 31, it said.
But he noted: "I think the challenge will be moving at a sufficient speed to develop the land and to attract the right kind of investment and businesses to the area."
** Amaravati project low priority for new Andhra Pradesh govt
Project may not be abandoned but a decision on it may yet take months, say senior officials
By Bhagyashree Garekar, Deputy Foreign Editor, The Straits Times, 10 Sep 2019
Prospects appear dire for the stalled capital city project of Amaravati, which was being developed in the southern Indian state of Andhra Pradesh with Singapore's help.
The zombie project, mothballed since the state elected Mr Jagan Mohan Reddy as its new Chief Minister in May, came up for discussion at the India Singapore Business and Innovation Summit.
India's visiting Foreign Minister Subrahmanyam Jaishankar ducked the question when asked yesterday by Singapore's Ambassador-at-large Tommy Koh if the project was "sick, very sick or dead". It was a decision for the state rather than the federal government, Mr Jaishankar said.
The state's Finance Minister Buggana Rajendranath made no mention of the proposed city, a pet project of the previous government, in his speech at the summit at the Sands Expo & Convention Centre.
In an interview with The Straits Times, he described it as something of a damp squib that did not figure high in the priorities of the agrarian state which was struggling to build an industrial base and generate revenue. "We don't have the money to build a city," Mr Rajendranath said.
"Our priority is bringing up the standard of living, providing equitable development to the entire state, providing an infrastructure for creating a manufacturing base, rather than to build a single city," he said. "You have all of these lined up against that one issue. You can have this or that."
Thus far, the involvement of Singapore firms has been relatively minor, restricted to developing a small portion as a financial district, he said.
Singapore has been involved in the project since its start in 2014, when Andhra Pradesh embarked on the venture because it lost its capital city Hyderabad to the newly created state of Telangana. Surbana Jurong submitted the city's masterplan in 2015, and a consortium of Ascendas-Singbridge and Sembcorp Development was announced in 2017 as the master developers. It was conceived to be 10 times the size of Singapore, requiring an investment of billions of dollars.
Dr P.V. Ramesh and Mr Shamsher Singh Rawat, senior officials in Mr Rajendranath's delegation, told The Straits Times that the state was keen to pitch for investors in the new sectors selected for priority development, including a greenfield international airport, four seaports, aquaculture and healthcare projects. Amaravati may not be abandoned, but a decision on it may yet take months, they said, adding that the state was in favour of developing a decentralised urban environment rather than concentrating all development in a single, large city.
In his remarks on the issue at the panel discussion, Foreign Minister Vivian Balakrishnan said the new state government, which has just completed 100 days in office, needed to consider the signal it was sending to investors while deciding on the fate of the project.
"It is the prerogative of the local government to adjust and amend its priorities from time to time, and it is the prerogative of the investors to decide whether to stay or to leave.
"What transcends such changes is the sanctity of contracts," he said.
"The government needs to consider the signal it sends to investors," he added.
Singapore has remained a highly competitive economy because it has provided a stable and predictable environment for investors, he said. "This lowers the cost of business. This encourages more investments.
"So, I would ask everyone to give time to the new government in Andhra Pradesh to sort out its priorities, then allow the private sector to make its own decisions, rationally, on commercial grounds."
*** Andhra Pradesh Amaravati project with Singapore to develop the Indian state's new capital cancelled
Decision to axe joint project with India's Andhra Pradesh state has mutual consent
By Grace Ho, Senior Political Correspondent and Rohini Mohan, India Correspondent, The Straits Times, 13 Nov 2019
Singapore's Ministry of Trade and Industry (MTI) confirmed this in a press statement yesterday, soon after the Government of Andhra Pradesh (GoAP) officially closed the project through a government order issued on Monday.
The order states that Amaravati Development Partners (ADP) - the joint company formed by Singapore firms and Amaravati Development Corporation, an Andhra Pradesh government entity - will be wound up by voluntary liquidation.
MTI said the closure is based on mutual consent between the GoAP and the Singapore consortium.
Minister-in-charge of Trade Relations S. Iswaran noted that the newly elected Andhra Pradesh government "has decided not to proceed with the start-up area, given its other priorities for the state".
"Companies recognise such risks when venturing into any overseas market and factor them into their investment decisions," he said.
Separately, Andhra Pradesh Minister for Municipal Administration and Urban Development Botsa Satyanarayana said the project was called off with mutual consent because when the state asked about work delays, it did not get "a convincing reply".
"There was no progress in the required measure and set parameters in the capital area region… The work has not begun in the desired pace in the start-up area and other basic formalities were not completed," he said yesterday.
A statement from his office said "the consortium did not undertake tangible work" in the start-up area while other institutions had built colleges. "How the state would benefit out of the project was the genuine concern we have expressed, and a satisfactory reply was not forthcoming. The government wants development and growth on a fast track, which was found wanting and has decided to close the issue," added the state minister.
In MTI's statement, Mr Iswaran said the Singapore consortium companies have stated the project has cost them a few million dollars, and its closure does not impact their investment plans in India.
Singapore companies remain interested in opportunities in Indian states because of their market size and potential, he added.
Amaravati was the pet project of the state's former chief minister Chandrababu Naidu, who had promised to model the city after Singapore, and inked two memorandums of understanding with the consortium backed by the Republic.
Ascendas-Singbridge company, now part of CapitaLand Group, and Sembcorp Development were awarded a joint venture (JV) opportunity to develop the city.
But plans were thrown out of kilter after Mr Naidu's election defeat by Mr Jagan Mohan Reddy's YSR Congress party in May.
Mr Reddy, long critical of the project, set up a committee to review everything from the land pooling system - a unique method of acquiring land from locals by offering farmers a developed plot in the future city as payment for their land - to the tenders issued for road building and housing.
In a separate announcement yesterday, Singapore Amaravati Investment Holdings (SAIH), the JV vehicle formed by Sembcorp and Ascendas-Singbridge, said it was "no longer feasible" to develop the city as originally planned.
It said: "The development of the project was envisioned to take place over 20 years in partnership with the GoAP. As the project is still at its early stages and the land in the start-up area has yet to be made available to ADP for development, costs incurred are limited to design services prior to commencement of execution works on the ground, amounting to a few million dollars."
Yesterday, a spokesman for Sembcorp would not comment on whether SAIH would recover the costs incurred, saying that a few million dollars is the anticipated expense since the liquidation process is not completed.
In September, Mr Iswaran had told Parliament that no government funds, including any subsidies or grants for investments in the state, were used for the project.
SAIH said yesterday that this latest development should not impact CapitaLand and SAIH's investment plans in India, which remains a key market for both companies.
It is also not expected to have a material impact on the earnings per share and net asset value per share of Sembcorp Industries for the financial year ending Dec 31, it said.
Singapore delivers Final Master Plan for Andhra Pradesh’s New Capital City -20 Jul 2015
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