Hyderabad: Singapore-based Ascendas-Singbridge Pvt Ltd and Sembcorp Development Ltd were awarded a contract by the Andhra Pradesh government on Monday to act as the master developer for a start-up area, spanning 1,691 acres, to be built in the upcoming capital city of Amaravati.
The Rs528 crore project will be completed in three phases over a span of 15 years.
Ascendas-Singbridge and Sembcorp will form the Amaravati Development Partner (ADP) along with the Amaravati Development Corporation (ADC), an Andhra government company. ADP will undertake the master development of the start-up area, which will be built along with the development of the 900-acre Government Core area in Amaravati.
For speedy implementation of the project, a high-level joint implementation steering committee (JISC) will also be formed.
The start-up area is expected to create the first centres of activity attracting settlers and investment into Amaravati City, the new capital city that the Andhra Pradesh government has planned to develop for the state, comprising developments for business, commercial and residential use.
A green-field development, the project includes infrastructure development to prepare the site for a mix of business, commercial and residential activities, as well as catalytic development in the start-up area.
S. Iswaran, minister of trade and industry, government of Singapore and Andhra Pradesh chief minister N. Chandrababu Naidu participated in the signing of a memorandum of understanding (MOU) on Monday.
The JISC will be co-chaired by the Naidu and Iswaran.
Similarly, a joint implementation working committee (JIWC) will also be formed with senior officials from both the Andhra government and the Singapore government. The equity participation in ADP will be Rs306 crore (58%) by the Singapore consortium and Rs222 crore (42%) by ADC.
Naidu said that nine cities in Amaravati will be developed to promote a “walk to work” atmosphere, said a press release from his office.
ADP will develop the 1,691 acres in 15 years in three phases. Only after sale of 70% of the developed land will the next phase be started. The reserve price of land for the first phase is Rs4 crore per acre. A committee consisting of the ADP and the government of Andhra Pradesh will decide the same for the next phases, said the statement.