Amaravati: The liquidation of Amaravati Development Partners, a specialized agency set up for a start-up development project, was ordered following a recent Cabinet meeting of Andhra Pradesh government.
The government has authorised the officials of Amaravati Development Partners, Amravati Development Corporation, Capital Region Development Authority to cancel the contracts made so far and prevent further work in the area.
The current Amravati Metro Development Authority (then CRDA Commissioner) handed over the powers to the ADC Chairman and Managing Director to cancel the subsidy, development agreement and partnership agreements made for the startup area development project.
The order suggested that Amravati Development Partners Ltd, a joint venture between Amravati Development Corporation and the Singapore Consortium, should carry out the liquidation process by mutual consent.
The orders state that the liquidation closure process should be carried out without going ahead with the contracts in the 6.84 sq km start-up area development project. The government has clarified that ADC has funds of Rs 7.90 crore in Amravati Development Partners.
According to reports, the consortium of Singapore companies retracted from the project last year following the change in Andhra Pradesh government. Reports stated that the Singapore companies cited government policy focusing on boosting businesses within the state as the reason for their retraction. The consortium included a 58 per cent stake while the government had 42 per cent.
Office and commercial spaces for companies and institutions were supposed to be developed in the allocated land under the public-private partnership, as per reports.
