State Finance Minister Buggana Rajendranath on Wednesday said the Amaravati capital city start-up area project, which was awarded to a consortium of Singaporean companies, was cancelled because it was not financially viable and would have been a burden on the state exchequer.
Speaking to ANI, the minister said: "The previous government had proposed to have a business district within Amaravati city. The company Amaravati Development Partners Pvt Ltd was to work on the project in collaboration with a consortium of Singaporean companies."
Rajendranath said the project was cancelled on mutual consent after deliberations between both sides.
"The project was supposed to be built on 1700 acres of land in Amaravati city. It was realised that it requires around 2 crore to develop the project. Our entire year's budget for the state is 2 lakh crore. We neither have the time nor the financial support for the project. The proposed project is not financially viable and is a burden on the state exchequer. The state has several other important requirements to address," he said.
The Singapore government had said in a statement that the project had been shut down on mutual consent between the state government and the Singapore consortium.
This decision, however, will have no bearing on their other projects in India and Andhra Pradesh.
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