Controversial Clause in Singapore Proposal to Go?

Andhra Pradesh government seem to be still in consultations over the clauses of the proposal placed by Singapore Companies Consortium for Seed Capital development. However one clause in the proposal, is not going on well with AP government. According to that clause, AP government had to be a guarantee for the loans taken by Singapore companies.

[m9ad]

AP Finance department say the clause is detrimental to the benefit of the entire project and asked the CRDA officials to negotiate with the consortium over the clause. AP government had to invest about 5000 Crore for the creation of the basic infrastructure in the area which includes roads, Power, drainage and water facility.

Once every thing is finalised, the proposal will be put in public domain. Under the Swiss Challenge method, the proposal can be challenged by any eligible company. If the company puts up a better bid, Singapore Consortium can better the proposal or the project will go to the other company.