The master plan will be ready in six months and after that a detailed action plan will be worked out, announced Chief Minister N Chandrababu Naidu after a meeting with S Iswaran, minister in the Singapore Prime Minister's office.

"We have decided to work with the government of Andhra Pradesh on this project of master planning and development of capital city," said Iswaran, who is also the city state's second minister for home affairs, trade and industry.

The MoU on "the master-planning and development of the capital city and capital region of Andhra Pradesh" was signed by officials of Infrastructure Corporation of Andhra Pradesh and International Enterprise Singapore in the presence of Naidu and Iswaran.

As per the MoU, the parties will "cooperate in the master-planning, development and construction of the capital city of Andhra Pradesh as a modern, vibrant, sustainable and smart capital city with a strong economy, excellent social amenities and efficient transport and logistics networks".

The Centre for Liveable Cities (CLC) and Singapore Cooperation Enterprise (SCE) from Singapore and the Capital Region Development Authority (CRDA) of Andhra Pradesh will be participating entities.

Singapore will provide expert advice on city development and urban governance.

It will draw up a capital region plan for 7,325 km area within the Vijayawada-Guntur-Tenali-Mangalgiri boundary, a capital city master plan for 125 km of the core of the capital city and a detailed seed development master plan for the construction of the approximately eight km first section of the capital city.

The Singapore master developer will be an entity of international repute with strong engineering and financial resources, possessing a proven track record of developing projects in Singapore, India and the region.

The parties also agreed to establish a joint high level committee, to be co-chaired by the chief minister of Andhra Pradesh and Singapore's second minister for trade and industry.

There will also be working committee to implement decisions of joint committee.

Naidu said the government of Singapore and various agencies and organisations will partner in the prestigious project. He said Singapore companies will also join in developing the capital city.

"I necessary will create Special Purpose Vehicles (SPVs) with them. We will mobilise required equity and give them land and other facilities," the Chief Minister said.

Naidu said he would like to see the first phase of the capital city completed before the next elections (2019).

The government has already decided to build the state capital between Vijayawada and Guntur.

The Chief Minister said he choose Singapore in view of its experience and expertise in planning and developing world-class cities in different countries.

Earlier in the day, he announced a policy for land pooling system for building the state capital. He said the land acquisition would start from Tuesday.

Appealing to people to participate actively in building the capital, he announced different compensation packages for the owners of wet and dry land.

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