India, ADB Sign USD 375 Million Pact to Develop Visakhapatnam-Chennai Industrial Corridor (Download PDF)

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India & Asian Development Bank (ADB) signed USD 375 million loan agreement to develop 800 km long Visakhapatnam-Chennai Industrial Corridor on 24th February 2017.800 km long Visakhapatnam-Chennai Industrial Corridor is 1st phase of planned 2500 km East Coast Economic Corridor. Earlier in September 2016, ADB approved USD 631 million loan for industrial corridor.

Image of east coast corridor (ECEC)

Image of East Coast Corridor (ECEC)

Image of east coast corridor (ECEC)

  • ADB signed USD 5 million loan agreement under Urban Climate Change Resilience Trust Fund that is managed by ADB to build climate change resilient infrastructure.

Highlights of Agreement

  • Total cost of project is 846 million dollars & work on it is expected to be over by 2031. Remaining 215 million dollars will be funded by AP govt.

  • Loan fund from ADB will help to build state-of-art industrial clusters, roads, efficient transport, reliable water & power supplies w/skilled. workforce & good business policies.

  • Loan comprises total of USD 500 million multitranche facility to build key infrastructure in 4 main centres along corridor including Visakhapatnam, Kakinada, Amaravati, & Srikalahasti (Yerpedu) in AP.

India, ADB Sign USD 375 Million Pact to Develop Visakhapatnam

India, ADB Sign USD 375 Million Pact to Develop Visakhapatnam

Map of India, ADB Sign USD 375 Million Pact to Develop Visakhapatnam

  • 1st tranche of USD 245 million will finance subprojects to develop high-quality internal infrastructure in 2 corridors- Visakhapatnam & Srikalahasti.

  • It encompasses USD 125 million policy based loan that will be used for capacity development of institutions engaged in corridor management.

  • It will provide support to enhance ease of doing business & for supporting industrial & sector policies to stimulate industrial development.

  • It will include 138 km of state highways & roads, 10 power substations, 488 km of drinking water pipeline, 47 km of storm drains, water treatment plants, & 281 km of power transmission & distribution lines.

East Coast Economic Corridor (ECEC)

  • ECEC, India’s 1st coastal economic corridor along eastern coast, stretches about 2500 km from Kolkata (West Bengal) in North to Kanyakumari (Tamil Nadu) in South.

  • It will connect long eastern coastline & strategically located ports w/multiple international gateways to connect India w/global value chains (GVCs) in East & Southeast Asia.

  • ECEC supports port-led industrialisation under Sagarmala initiative & Act East Policy by linking domestic companies w/vibrant global production networks of East & Southeast Asia.

Asian Development Bank (ADB)

  • ADB is regional development bank established on 19th December 1966. It promotes social & economic development in Asia.

  • It is headquartered in Manila, Philippines. ADB has 67 members, of which 48 are from w/I Asia & Pacific & 19 outside.

  • ADB is modelled closely on World Bank. It has similar weighted voting system where votes are distributed in proportion w/members’ capital subscriptions.

  • As of 2014, Japan is largest shareholder (capital subscription) of ADB having 15.7 % shares. US holds 15.6%, China (6.5%), India (6.4%), & Australia (5.8%).

- Published/Last Modified on: October 1, 2018

Economy, International Relations/Organizations

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