Vijayawada: The AP Cabinet on Friday decided to go ahead with the controversial Swiss Challenge model for selecting the master developer for AP’s new capital city, Amaravati.
The AP Cabinet meeting, chaired by Chief Minister N. Chandrababu Naidu, approved the Swiss Challenge model after a high-powered committee headed by finance minister Yanamala Ramakrishnudu cleared the proposal.
Briefing media at the end of the Cabinet meeting, Mr Naidu said a Singapore consortium of Ascendas-Singbridge and Sembcorp Development Limited had submitted a proposal on October 30, 2015 under Swiss Challenge to be the master developer of Amaravati.
The state government will give 1,691 acres (about 58 per cent) of the seed capital area to these two companies in three phases. The Amaravati Development Company, a special purpose vehicle floated by the AP government, will have 42 per cent share.
In the first phase, the government would allot 200 acres of land at a cost of Rs 4 crore per acre and another 50 acres would be given at a nominal price.
