ADB approves $250 million loan for India’s National Industrial Corridor Development Program

ADB approved a $250 million loan to offer support to India’s National Industrial Corridor Development Program (NICDP). Read all you need to know.

Asian Development Bank (ADB), Source: Reuters
Asian Development Bank (ADB), Source: Reuters

The Asian Development Bank (ADB) on October 29, 2021, approved a $250 million (about Rs 1,875 crores) loan to offer support to India’s National Industrial Corridor Development Program (NICDP). This is the first subprogram loan of the programmatic $500 million loan for the development of 11 industrial corridors across 17 states.

Also read: ADB to provide $484 million loan for Chennai-Kanyakumari Industrial Corridor

ADB $250 million loan for India’s National Industrial Corridor Development Program (NICDP)

ADB is committed to contributing to the ambitious reform agenda of the Government of India to strengthen industrial infrastructure. The assistance will also aid India in boosting the competitiveness of its manufacturing sector, generating a high level of formal employment, and increasing the share of manufacturing in the Gross Domestic Product (GDP).

The first subprogram loan of $250 for India’s National Industrial Corridor Development Program (NICDP) will aid Indian government initiatives in strengthening institutional framework and capacity building for industrial corridor planning, facilitating ease of doing business, improving project readiness, and creating opportunities for domestic and international investors.

Also read: ADB approves $150 million loan for urban housing project in Tamil Nadu

India’s National Industrial Corridor Development Program (NICDP)

India’s National Industrial Corridor Development Program (NICDP) aims at developing world-class industrial nodes. Under NICDP, key supporting features of these industrial nodes would be efficient urban agglomeration, climate-resilient, sustainable infrastructure, and multimodal connectivity including airports, ports, etc.

The NICDP will also be seeking strong institutional and regulatory frameworks. As a part of NICDP, India is also developing initiatives for green corridor frameworks, climate-resilient infrastructure, and skill enhancement for enabling the participation of female labor.

As per the official data on the National Industrial Corridor Development Corporation Limited (NICDC), 11 Industrial Corridors Projects are being taken up for development with 30 Projects to be developed in 04 phases up to 2024-25:

1. Delhi Mumbai Industrial Corridor (DMIC)

2. Chennai Bengaluru Industrial Corridor (CBIC)

3. Amritsar Kolkata Industrial Corridor (AKIC)

4. East Coast Industrial Corridor (ECIC) with Vizag Chennai Industrial Corridor (VCIC) as Phase 1

5. Bengaluru Mumbai Industrial Corridor (BMIC)

6. Extension of CBIC to Kochi via Coimbatore

7. Hyderabad Nagpur Industrial Corridor (HNIC)

8. Hyderabad Warangal Industrial Corridor (HWIC)

9. Hyderabad Bengaluru Industrial Corridor (HBIC)

10. Odisha Economic Corridor (OEC)

11. Delhi Nagpur Industrial Corridor (DNIC)

India’s National Industrial Corridor Development Program, Source: NICDC

India’s National Industrial Corridor Development Program Map, Source: NICDC

Significance

The proposed Industrial Corridor Development Program by ADB will aid in expanding and enhancing the competitiveness of manufacturing in India by supporting the development of industrial corridors.

The program will accelerate inclusive economic transformation, boost economic competitiveness and create jobs, expand multi-modal transport networks along economic corridors, address skills gaps to support industrialization, and enhance institutions for corridor management.

India recently upgraded its Industrial Park Rating System (IPRS) for boosting industrial infrastructure competitiveness and supporting policies to enable industrialization across the country.

India has also taken up significant reforms for increasing the productivity and competitiveness of the manufacturing sector. These reforms include reducing corporate taxes, streamlining business processes to facilitate private investment, increasing public investment in infrastructure, consolidating labor codes, and approving the creation of a new development institution.

The Indian government has also launched the ‘Digital India’ and ‘Skill India’ programs for attracting youth and creating high-value jobs in the manufacturing industry.

Also read: India, ADB sign $231 mn loan to set up 120 MW hydroelectric power plant in Assam

About Asian Development Bank

Established in 1966, the Asian Development Bank (ADB) is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific while sustaining its efforts to eradicate extreme poverty. In a bid to assist its members and partners, ADB provides loans, technical assistance, equity investments, and grants for promoting social and economic development.

Also read: India, ADB sign agreement to support preparation of road upgradation project in Sikkim

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