In a departure from its earlier stance of handing over the development of Amaravati to a master developer, the TDP government has decided to float a corporation in which Singapore will be a partner. Together, they will undertake the construction of the new capital on a profit-sharing basis. Sources told STOI that Japan too might become a partner in the near future. 

The Amaravati Development Partners Corporation is to be the name of the new entity. "This corporation will be our agency to enter into agreements with master developers who will bring in investments into the capital. There will be investment and profit sharing between the AP government and the master developers. Singapore has agreed to be partner for the development of 3,000 acres," municipal administration minister P Narayana told STOI.

As per the new scheme, both AP and the master developers recommended by the Singapore government will invest money in the corporation. "However, the land ownership will remain with the corporation. The master developers in turn will bring in industries and other entities in the 3,000 acre area of Amaravati that will he handed over to them," said the sources. 

Most likely, Singapore's SembCorp and Temsek Holdings Pvt Ltd consortium will partner AP in the Amaravati Corporation. 

Temsek Holdings (Private) Limited is a sovereign wealth fund of the Government of Singapore specializing in growth capital, restructuring, and divestiture transactions. And Jurong International, which prepared the master plan for the new capital along with Surbana, is a subsidiary of SembCorp.

Earlier, the AP government had proposed to divert some portion of the land directly to the master developer, but in the new formula under the new corporation, both AP and Singapore will act as investment-and-profit sharing partners. After the developed land is allotted to the farmers, the AP government will have around 15,000 acres of land in hand of which 3,000 acres will be handed over to the Singapore consultants. 

In the remaining land, the Andhra Pradesh government will develop the other infrastructure needed in Amaravati, including the government buildings. 

According to the sources, the land rate for the 3,000 acres that the Singaporean developers will in turn allot to industries will be fixed by the Capital Region Development Authority (CRDA). 

"We are expecting the Singapore government to send us the profit-sharing formula within the next 10 days," an official said. Apart from Singapore, the Japanese government has shown interest in becoming a partner in the development of Amaravati. Cooperation with Japan will be worked out shortly, the sources said. 


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