Amaravati project not feasible: AP govt

Under attack for terminating the Amaravati Capital City Startup Project begun by the previous government of Chief Minister N Chandrababu Naidu - to be developed by a consortium of Singapore companies, the Andhra Pradesh government has finally clarified that the project was not feasible. Finance Minister Buggana Rajendernath said the project involved huge investment which did not match the proposed development. The Singapore Consortium and the state government mutually agreed to call it off.

Claiming the decision was taken in the best interest of the state, he said there was no meaning in developing 1,700 acres as a business district without developing the entire capital of Amaravati over 100,000 acres. The Startup Project could never have been completed in five years, Rajendernath said, adding it would have taken decades, and neither time nor the finances permitted this. The new government said the state has other priorities, like infrastructure development, health, industries, employment to youth and the holistic development of all 13 districts.

“During the deliberations, it was realized that it requires about INR 2 lakh crore to develop that one lakh acres; that is the size of the state’s annual budget,” he said.

The Start-up Area Project was proposed to be developed by a company called Amaravati Development Partners Limited, comprising Singapore companies Ascendas Singbridge and Sembcorp Development Ltd and Amaravati Development Corporation of the AP government.

“The huge city along with the area around it which comprises the Capital Region Development Authority (CRDA), is about 217 sq km, which is roughly about twice the

size of Mumbai, including Navi Mumbai and suburbs.”

The agreement with the Singapore Consortium was signed in 2017 when the Telugu Desam Party (TDP) was in power. Amaravati was the brainchild of Naidu, who lost power to YSR Congress Party (YSRCP) in May 2019.

The TDP chief slammed Chief Minister Y.S. Jagan Mohan Reddy for terminating the project. He accused Reddy of not only “destroying” AP with his foolish decisions, but also hurting India’s brand equity as an investment destination.

“AP was brimming with hope when the Singaporean government signed up with us to co-participate in building Amaravati. The dream lies shattered today with them pulling out. Hope is lost. Investments are gone. Andhra Pradesh is on the path of devastation,” Naidu tweeted.

Meanwhile, as an indication of the current government’s new, priorities, government schools in AP are set to get a facelift with the state government launching a new programme to revamp them by providing better infrastructure and amenities at a cost of INR 12,000 crore. Under the scheme, 45,000 government-run schools will undergo a complete makeover in the next three years, bringing them on par with or even better than the ones in private and corporate sectors.