Singapore, India ink deal for $16b capital city

Masterplan to be developed by June with construction set to start soon after

The new state capital will be built close to Vijayawada, on the southern banks of the river Krishna.
The new state capital will be built close to Vijayawada, on the southern banks of the river Krishna.

Master plans for the construction of a new $16 billion state capital for Andra Pradesh in India’s south eastern coast will be ready by June, say officials.

Andra Pradesh is the eighth largest state in India, covering an area of 160,205 km2 – and is currently administered by Hyderabad, the capital of neighbouring, newly formed state Telangana. The two regions were joined, but split in reorganisation of the area has seen a division and the need for a new state capital.

An agreement was signed between International Enterprise Singapore and the Infrastructure Corporation of the Andhra Pradesh government to prepare the masterplan and develop the new city.

The new city will be constructed on the southern side of river Krishna near Vijayawada and cover an 122 square kilometres site. A deal has been struck between state authorities and International Enterprise Singapore (IES) to develop the capital city.

The development, the single largest infrastructure project attempted by Singapore in India, will be done in three stages. There will be a master plan for 7,325 km2 of a state capital region - 10 times the size of Singapore; a 125 km2 core and an 8 km2 development where Singaporean companies will build up utilities.

Initial "vision" plans are expected by mid-February, a detailed action plan and zoning is due in April, and the masterplan by June. Construction is expected to begin soon after,

Singapore’s S. Iswaran, Minister in the Prime Minister's Office and Second Minister for Home Affairs and Trade and Industry, said, "Singapore is delighted to be Andhra Pradesh's partner in masterplanning and developing its new capital city and surrounding region. A good masterplan lays a strong foundation, and its effective implementation, beginning with the seed development, will ensure the city develops sustainably into a vibrant political, economic and cultural centre of the state.”

Andhra Pradesh Chief Minister N Chandrababu Naidu said, "The governments of AP, Singapore and Japan will sit together and discuss development plans for the rest of AP capital region. We are going ahead positively. The Singapore and Japan governments are fully cooperating. Japan will come up with plans for industrialisation and investments in the capital region."

He said that so far, 1,779 farmers from villages in the proposed capital region have handed over 3,900 acres of land to the state government under the land pooling scheme for the capital's construction.

"This is a win-win situation for all as we will build a world-class capital city with a variety of economic activity," he said.


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