The Governments of Singapore and Andhra Pradesh tonight signed a memorandum of understanding under which the former will design a master plan for building the state's new capital near Vijayawada.

A joint working group of the two governments, to be co-chaired by Chief Minister N Chandrababu Naidu and Singapore's second Minister for Trade and Industry S Iswaran, is being set up under the MoU for monitoring the progress of the project.

Speaking at the inking of the agreement, Naidu said the Ministry of External Affairs has given its green signal for the MoU while Prime Minister Narendra Modi "blessed us" and asked to go ahead.

"We are looking forward to a mutually-beneficial outcome that all could be proud of. We will not take the Singapore model and slap it on AP. We will work together," Iswaran told a joint press conference with Naidu after signing the MoU.

"We have a strategy to move forward and everything will be done systematically and scientifically. We want to build a capital that is economically, socially and environmentally sustainable," Naidu said.

As the Chief Minister said the master plan for the "core capital area" of "8 or 15 sq kms" would be ready in six months, Iswaran, too, maintained some details of the project would expectedly be ready by mid-2015.

"We hope to deliver it in real-time, as the Chief Minister said. The master plan will be designed for the core capital area, capital city area and at the larger regional level," Iswaran added.

Asked if the Asian city-state would be involved in the construction of the new capital, Naidu and the visiting Minister said there could be joint development of certain parts.

"Some Singapore companies will be involved in the capital construction. We will form joint ventures with some Singapore Government companies. If required, we will create some special purpose vehicles as well," Naidu stated.