The Singapore-based consortium, which submitted its Swiss challenge proposal for the construction of Amaravati Seed Capital in an extent of over 1,600 acres, will be given an equity share of 58 per cent in the project.

Earlier, it was proposed to share the revenue equally between the consortium and the Amaravati Development Corporation, which was called Capital City Development and Management Corporation, a special purpose vehicle floated by the government. According to the latest discussions, the share of the ADC now will be 42 per cent, mostly in the form of land.

The revenue from the project will be shared in the ratio of 58:42 between the consortium, comprising Asendas, Singbridge, and Sembcorp Development Ltd., and the Singapore government with 74.5 per cent share in the consortium and the ADC respectively.

Final decision today?

“Chief Secretary, who is the Chairman of Infrastructure Authority, called for a meeting with Secretaries of five to six departments to consider all aspects on Wednesday. A final decision on accepting the Swiss challenge proposal is possible tomorrow,” sources said.

Once the proposal submitted by the consortium, which had been fine tuned after several rounds of discussions to meet the norms, is cleared, it will enter into an agreement with the ADC. The proposal will be submitted to the Cabinet for its approval. Once the proposal is approved, it will be put in the public domain and invite better proposal from any competitor. If a competitor submits a better proposal, the consortium will have to match it to bag the project.

source: http://www.thehindu.com / The Hindu / Home> National> Andhra Pradesh / by M.L.Melly Maitreyi / Hyderaba – June 22nd, 2016