ADB to extend $631-mn financing facility for Vizag-Chennai industrial corridor
24 July 2018
The Asian Development Bank (ADB) has approved a $631 million multi-tranche financing facility, comprising loans and grants, for the Vizag-Chenni Industrial Corridor project, minister of state for commerce and industry C R Chaudhary informed the Lok Sabha in a written reply on Monday.
Of this $500 million will be given in two tranches to build key infrastructure while another $125 million will be two-tranche policy based loan (PBL) to support policy reforms and institutional development in the states. Another $5 million will come as grant from the multi-donor Urban Climate Change Resilience Trust Fund (UCCRTF) to build climate change resilient infrastructure in Visakhapatnam.
The remaining $1 million will come as technical assistance fund to help the Andhra Pradesh government implement policy reforms.
The first phase of the master planning of two nodes of Visakhapatnam-Chennai Industrial Corridor (VCIC) involving Visakhapatnam and Yerpedu-Srikalahasti is under way, the minister informed the House.
After completion of master planning and detailed preliminary engineering, it will have to be approved by the National Industrial Corridor Development and Implementation Trust (NICDIT) before government releases funds for the projects for development of industrial corridors.
Four nodes, namely, Visakhapatnam, Kakinada, Kankipadu-Gannavaram and Yerpedu-Srikalahasti in Andhra Pradesh, have been identified for development in Vishakhapatnam-Chennai Industrial Corridor (VCIC) on the basis of conceptual development plan (CDP) prepared by the Asian Development Bank (ADB).