ADB to provide $484 million loan for Chennai-Kanyakumari Industrial Corridor
The amount by ADB will be used to upgrade about 590 km of state highways in the Chennai-Kanyakumari Industrial Corridor Influence areas, covering 23 of the 32 districts between Chennai and Kanyakumari in Tamil Nadu.
The Asian Development Bank will be providing a $484 million loan (over Rs. 3,500 crores) to improve transport connectivity and to facilitate industrial development in the Chennai-Kanyakumari Industrial Corridor (CKIC) in Tamil Nadu.
The Asian Development Bank is the lead partner of the Government of India in developing the East Coast Economic Corridor of which CKIC is part. With regard to the loan, an agreement has been signed between ADB and the government.
As per the official release, in line with Strategy 2030, the long-term corporate strategy of ADB, the latest project emphasizes climate change resilience, sustainability, and road safety elements. 7-year contracts are provided for long-term maintenance of road projects.
ADB Country Director for India, Takeo Konishi, and DEA Additional Secretary, Rajat Kumar Mishra, today signed agreement for a $484 million loan to improve industrial connectivity in the Chennai-Kanyakumari Industrial Corridor (CKIC) influence area. pic.twitter.com/pEhar7Ura0— ADB India (@ADB_INRM) June 16, 2021
Objective of ADB’s funding:
The amount by the Asian Development Bank will be used for a project to upgrade about 590 km of state highways in the Chennai-Kanyakumari Industrial Corridor Influence areas, covering 23 of the 32 districts between Chennai and Kanyakumari in Tamil Nadu.
Upgradation of highways in CKIC:
• The enhanced connectivity with the industrial hubs with hinterland and ports will particularly help in increasing the participation of Indian manufacturing in global production networks and global value chains, thereby creating jobs along the corridor.
• The Climate change adaptation measures will also be incorporated in the highway upgrades.
• The project will also help in strengthening road safety improvement programs through advanced technologies for road monitoring and enforcement.
• It will also help in improving the planning capacity of Tamil Nadu’s Highways and Minor Ports Department.
Chennai-Kanyakumari Industrial Corridor:
CKIC is part of India’s East Coast Economic Corridor (ECEC), which stretches from West Bengal to Tamil Nadu. It also connects India to the production networks of Southeast, South, and East Asia.