S'pore firms eye project to build new capital city in India

Ascendas-Singbridge, Sembcorp may submit bids to build new capital city in India: Minister

The new capital city for the southern Indian state of Andhra Pradesh, Amaravati, is being built on the banks of the Krishna River.
The new capital city for the southern Indian state of Andhra Pradesh, Amaravati, is being built on the banks of the Krishna River.
PHOTO: SURBANA JURONG

At least two Singaporean township developers are likely to bid for the project to help build a new capital city for the southern Indian state of Andhra Pradesh.

For the third phase, the project covers about 17 sq km in the centre of the new capital Amaravati, which is being built on the banks of the Krishna River.

Singapore submitted the third and final master plan for the city to the Andhra Pradesh government yesterday. The master plan was designed by Singapore's Surbana Jurong. It sets out the land use and infrastructure plans for a 16.9 sq km start-up area within the 7,000 sq km capital region.

The first part was delivered in March while the second was delivered in May. The city centre will be home to government buildings, including the legislative, executive and judiciary branches of the Andhra Pradesh government.

It will also include a mix of commercial and residential areas to cater to the employment, housing, social, cultural and recreational needs of the residents. By 2050, Amaravati is expected to be home to over 10 million people.

  • AMARAVATI MASTER PLANS

  • 7,235 sq km

    Phase 1, delivered in March

  • 125 sq km

    Phase 2, handed over in May

  • 16.9 sq km

    Phase 3, in July. The three master plans combined will guide the development of Amaravati till 2050

"Singapore is honoured to have been invited by the Andhra Pradesh government to master plan and develop its new capital Amaravati," said Mr S. Iswaran, Minister in the Prime Minister's Office and Second Minister for Trade and Industry, in Andhra Pradesh yesterday. He was there to deliver the plan to the state's Chief Minister Chandrababu Naidu.

Mr Iswaran said the master plans have been completed on schedule and Singapore is keen to help the city implement and develop them.

"This collaboration has also opened up more business and investment opportunities in Andhra Pradesh and India for Singapore companies," he added.

With the completion of the development blueprint, the next step is for the Andhra Pradesh government to select a master developer.

In an interview with the Singapore media last week, Mr Iswaran said Singaporean township developers Ascendas-Singbridge and Sembcorp Development have both indicated interest in bidding for the project.

Mr Iswaran said either of these firms stand a good chance of clinching the project as they have good track records in township development projects in countries such as China and Vietnam, and both are familiar with India.

Sembcorp Development chief executive Kelvin Teo said: "For over 20 years, we have been at the forefront of many government-supported projects. We have conceptualised 13 large-scale integrated urban developments covering 11,000ha of land across Asia, and invested in more than 3,300MW of thermal and renewable power assets across seven Indian states, including Andhra Pradesh."

Ascendas-Singbridge deputy chief executive Manohar Khiatani, who is also president and chief executive of Ascendas, said India has always been a key market for Ascendas-Singbridge. Andhra Pradesh is an exciting chance for the firm to deepen its presence in India, he added.

"We will study the master plan... when it is available, to identify areas where we could potentially participate in and contribute our expertise in urban development."

Singapore's involvement in the Amaravati's development will help create business opportunities for local firms in areas such as manufacturing and logistics, said Mr Iswaran.

The project also has significance for bilateral ties as it is an example of how Singapore can help India build sustainable, smart cities, he added.

Mr Iswaran said either of these firms stand a good chance of clinching the project as they have good track records in township development projects in countries such as China and Vietnam, and both are familiar with India.

Sembcorp Development chief executive Kelvin Teo said: ''For over 20 years, we have been at the forefront ofmanygovernment-supported projects.We have conceptualised 13 large-scale integrated urban developments covering 11,000ha of land across Asia, and invested in more than 3,300MW of thermal and renewable power assets across seven Indian states, including AndhraPradesh.''

Ascendas-Singbridge deputy chief executive Manohar Khiatani, who is also presidentandchief executive of Ascendas, said India has always been a key market for Ascendas- Singbridge. AndhraPradesh is an exciting chance for the firm to deepenits presence in India,he added.

''We will study the master plan... when it is available, to identify areas where we could potentially participate in and contribute our expertise in urban development.''

Singapore's involvement in the Amaravati's development will help create business opportunities for local firms in areas such as manufacturing and logistics, said Mr Iswaran.

The project also has significance for bilateral ties as it is an example of how Singapore can help India build sustainable, smartcities, he added.

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A version of this article appeared in the print edition of The Straits Times on July 21, 2015, with the headline S'pore firms eye project to build new capital city in India. Subscribe