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Despite the setback due to the closure of the Amaravati Capital City Start-Up Area Project, Singapore companies will remain interested in opportunities in Andhra Pradesh and other Indian states because of the size and potential of the market.
"Our economic agencies will continue to help our companies internationalised by exploring opportunities in India and other markets", the Ministry of Trade and Industry of Singapore has stated.
The response was in regard to the decision of the Andhra Pradesh government led by Chief Minister, YS Jaganmohan Reddy to close the Amaravati project via a govt order dated November 11.
The Singapore government stated that it notes the decision of the AP givernment. The closure is based on mutual.consent between the AP govt and the Singapore consortium, comprising Ascendas Singbridge Pte Ltd ( now part of CapitaLand Group) and Sembcorp Development Ltd.
In a statement, Minister in charge of Trade Relations, S Iswaran said "The Singapore Consortium was appointed by the Govt of AP in 2017 to help master develop the 6.84 sq km Start Up Area of the new capital of Amaravati. We note that the new govt has decided not to proceed with the project given its other priorities for the State".
In the light of this development, Singapore consortium companies have stated that the project has cost them a few million dollars, but the closure does not impact their investment plans in India.
Companies do recognise such risks when venturing into any of overseas market and factor them into their decision making process, the statement said.
Ever since the YS Jaganmohan Reddy govt came to power in Andhra Pradesh in June this year, the Amaravati Capital project, a dream initiative of former CM, N Chandrababu Naidu has been under review.
The World Bank too had pulled out of a proposed development project in Amaravati a few months ago.
Talks of a distributed capital structure led to speculation of an entire shift to a new location were circulating in the State, which saw the YSR Congress Party led by Jaganmohan come to power with a landslide victory in the Assembly elections.
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