The Andhra Pradesh Government plans to float global tenders to select the master developer for the new capital city of Amaravathi on the banks of the river Krishna in the Vijayawada-Guntur region.

The Cabinet has agreed to select the developer through the Swiss Challenge method.

In the Swiss Challenge, a developer is asked to come up with a proposal for the plan or project. Then others who are interested would be allowed to present their plan.

If the new developer comes up with a proposal lower then the earlier one, the earlier developer would be given a chance to match that offer. If he does it, he would be awarded it. If not, the latter would be given the mandate.

In the past, the State had tried this during the stake sale taken up by the Implementation Secretariat while divestment process in State-owned public sector undertakings. A similar approach is planned now.

Singapore role According to official sources, the Singapore Government, which has been entrusted the task of providing a master plan is likely to come up with three plans and present them to the State by May.

With the Centre recently allocating about ₹1,500 crore for the new capital city, the State has funds to begin work. Among various models considered for development, the State is keen to take up public, private partnership mode for development of various projects in the new capital city.

Chief Minister N Chandrababu Naidu is keen that the capital city works be inaugurated by Prime Minister Narendra Modi in June. During the recent Cabinet meet, the State had approved one of the master plans submitted by the Singapore Government for the capital city. This had some changes suggested by the State during the Chief Minister’s delegation meeting in Singapore last month.

Thus far, the State Government has managed to pool in about 33,000 acres of land required for the capital region. Acquisition of about 600 acres in some of the villages near Vijayawada and Guntur, which the State was aiming at, has still not materialised.

They would be given additional time for them to pool in. If that does not work out, then under the Land acquisition Act, this land will be acquired.

Two retired judges of AP High Court, a senior advocate and a senior journalist have filed a petition in Hyderabad High Court challenging the constitutional validity of AP Capital Regulatory Development Authority Act, 2014, contending that it was against the provisions of the AP Reorganisation Act.

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