Andhra Pradesh to accept capital plans under Swiss mode

Hyderabad: The AP government has appointed a team of advocates to study the  amendments to be done in the AP Infrastructure Development and Enabling Act to make  possible the agreement between the Singapore Consortium of Companies and the Amaravati Development Company (ADC) for the development of the new capital city under Swiss challenge mode.

Singapore-based consortium of companies Singbridge, Ascendas and Sembcrop has submitted a proposal on partnership on the basis of Swiss Challenge method.

The state government has amended the AP infrastructure development and enabling act to handover land to the  companies on a free holding basis. After studying the proposals of Singapore consortium  of companies, officials told the government to accept the proposals made by the Singapore Companies and make further changes to the AP infrastructure act.

The state government, thereon, appointed a team of advocates to study the Infrastructure act and suggest the amendments. A senior official of AP Capital Region Development Authority (CRDA) told DC that the officials have suggested some amendments in the act and  a team of advocates would study this.

According to this act, no person or entity other than the central government or state government or a government agency or any joint venture between the central government or state government departments or any statutory body or authority or local authority or any corporation or company in which central government or state government or a government agency, a statutory body or authority or a local body can hold more than 51 per cent of  the paid-up share capital.

But the state government has in principle agreed to give 52 per cent share to Singapore companies and accepted to take 42 per cent share for itself, and  for this, the act requires to be amended.