The Asian Development Bank (ADB) on 20 September 2016 approved 631 million US dollars loan for construction of industrial corridor between Visakhapatnam and Chennai, part of India's first coastal industrial corridor running from West Bengal to Tuticorin in Tamil Nadu.
The fund will help develop the first key 800-km section of the planned 2500-km East Coast Economic Corridor which is expected to spur development on India's eastern coast and enable seamless trade links with other parts of South and Southeast Asia.
Highlights of the Visakhapatnam-Chennai Industrial Corridor Project
• The total cost of the project is 846 million US dollars and work on it is expected to be over by 2031.
• The remaining 215 million US dollars will be funded by the Andhra Pradesh government.
• Loans and grants from ADB comprise a 500 million US dollars two-tranche facility to build key infrastructure and a 125 million US dollars two-tranche loan to help in business promotion.
• The loan is for a period of 25 years at interest rate of 0.5 percent plus libor.
• The loan will help the government build state-of-the-art industrial clusters, roads, efficient transport, and reliable water and power supplies with a skilled workforce and good business policies.
• The new infrastructure will be built in the four main centres- Visakhapatnam, Kakinada, Amaravati and Yerpedu-Srikalahasti along the corridor.
• It will include 138 km of state highways and roads, water treatment plants, 488 km of drinking water pipeline, 47 km of storm drains, 10 power substations and 281 km of power transmission lines.
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What: Approved by ADB
When: 20 September 2016