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ADB approves US$ 631 million loan for Vizag-Chennai industrial corridor

Business Standard:  September 20, 2016

New Delhi: The Asian Development Bank (ADB) has approved a $ 631 million loan to develop the proposed Vishakhapatnam- Chennai industrial corridor, the first such along a coastline in India.

Part of the larger East Coast Economic Corridor (ECEC) that will extend 2,500 km from Kolkata in West Bengal and Tuticorin in Tamil Nadu, the government expects the project to bring manufacturing and export industries to India's east coast.

The ECEC also includes a large number of ports which are currently underutilized but may be leveraged to improve India's trade capabilities with South East Asia.

The ADB loan includes $500 million for financing infrastructure like roads, power generation and drinking water, among others, and a $125 million component to help policy interventions by the government.

On Tuesday, ADB officials said the loan would be disbursed as soon as the Andhra Pradesh government finalized awarding the contracts to various developers for creating infrastructure within the project area.

The first tranche of $245 million is expected to reach the government by the first quarter of 2017, officials added.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.