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.