The YCP government led by Jagan Reddy has approved the draft termination of the Concession and Development agreement (CADA) and Shareholder’s Agreement (SHA) pursued and signed by Amaravati Development Corporation Limited (ADCL) with the Singapore Consortium. The agreement was taken primarily to initiate growth and ensure the development of the ‘start-up’ sphere in Amaravati.
As per the reports, the state government has also ordered the concerned authorities to carry out the termination agreement and start with the liquidation process. J Syamala Rao, Secretary to Municipal Administration and Urban Development has issued an order to this effect. The order was issued as a follow-up to the state cabinet decision on November 27.
The idea of Amaravati ‘Start-up’ project was conceived back in 2017 by the former Chief Minister N. Chandrababu Naidu and the TDP led state government to attract investors and venture capital with an aim to establish Amaravati as a prime hub for employment in the southern part of the country.
From an economic point of view, the cabinet’s decision to take back the mutual agreement on the development of the ‘Start-up’ area in Amaravati is said to create a negative growth impact in the long term with the YCP government having no plans in the similar angle. Back in 2017, policymakers opined that the idea of developing Amaravati as a ‘Start-up’ hub was a great attempt to transform the growth pace and long-term economic steadiness of the state. With the presence of independent start-up bodies and investment-friendly policies in other South Indian states, they have developed start-up spheres and enjoyed a great level of positive economic impact in the last fifteen years. However, with the change of power in 2019 the equation has changed with Jagan Mohan Reddy as the CM and now they have decided to call off the whole project.