India, ADB sign USD 375 million pact to develop Visakhapatnam-Chennai Industrial Corridor
ADB also signed USD 5 million loan agreement under the Urban Climate Change Resilience Trust Fund that is managed by ADB to build climate change resilient infrastructure.
India and Asian Development Bank (ADB) on 24 February 2017 signed USD 375 million loan agreement to develop 800 km long Visakhapatnam-Chennai Industrial Corridor.
This 800 km long Visakhapatnam-Chennai Industrial Corridor is the first phase of a planned 2500 km East Coast Economic Corridor. Earlier in September 2016, ADB approved USD 631 million loan for the industrial corridor.
Moreover, ADB also signed USD 5 million loan agreement under the Urban Climate Change Resilience Trust Fund that is managed by ADB to build climate change resilient infrastructure.
Highlights of the agreement
• The loan comprises a total of USD 500 million multitranche facility to build key infrastructure in the four main centres along the corridor including Visakhapatnam, Kakinada, Amaravati, and Srikalahasti (Yerpedu) in Andhra Pradesh.
• The first tranche of USD 245 million will finance subprojects to develop high-quality internal infrastructure in two corridors- Visakhapatnam and Srikalahasti.
• It also encompasses USD 125 million policy based loan that will be used for capacity development of institutions engaged in corridor management.
• It will also provide support to enhance ease of doing business and for supporting industrial and sector policies to stimulate industrial development.
About East Coast Economic Corridor (ECEC)
• ECEC, India’s first coastal economic corridor along eastern coast, stretches about 2500 km from Kolkata (West Bengal) in the North to Kanyakumari (Tamil Nadu) in the South.
• It will connect long eastern coastline and strategically located ports with the multiple international gateways to connect India with global value chains (GVCs) in East and Southeast Asia.
• ECEC also supports port-led industrialisation under Sagarmala initiative and Act East Policy by linking domestic companies with vibrant global production networks of East and Southeast Asia.