Start-Up Area project not feasible: Finance minister Buggana Rajendernath Reddy.

Amaravati: The Start-up Area Project within Amaravati city was closed as it was found not feasible and the Singapore Consortium and the state government had mutually agreed to call it off, explained finance minister Buggana Rajendernath Reddy.

The Finance Minister, in a statement on Wednesday, said it was found unfeasible to take up such a huge project which involved huge investment which do not match the proposed development.

The project, proposed to develop an area of about 1,691 acre by a company called Amaravati Development Partners Limited which in turn consisted of a few Singapore companies namely Ascendas Singbridge and Simbcorp and Amaravati Development Corporation belonging to the AP government.

During the deliberations, it was realised that this roughly 1,700 acre is a small part of the huge city, which was proposed to be developed. The huge city along with the area around it which comprises the CRDA, is about 217 sq km, which is roughly about two times size of Mumbai, including Navi Mumbai and suburbs.

He said, "Within this CRDA, there again is a city called Amaravati, which again is roughly about one lakh acre. It was proposed to acquire 35,000 acre fertile land belonging to various owners by way of land pooling and about 10,000 acre government land. It was also proposed to acquire over 40,000 acre forest land by deforesting the existing forest for which the then AP government had requested the Government of India to deforest it. This Amaravati city is a part of the CRDA and this is about 1,700 acre within the one lakh acre."

"During deliberations, it was realised that it requires about Rs 2 lakh crore to develop that one lakh acre which is the size of state annual budget. Unless that amount is spent and the whole area is developed, there is no meaning of having a business district in it," he said.

He said the project would take decades to be completed as against the proposed five years. "Neither the time nor finances permit this sort of development in such a short time. The state government has now realised the various other requirements of the state today like infrastructure development of health, industries, employment to youth and the holistic development of the entire state with 13 districts," he explained.