Vizag-Chennai corridor to get $200-million boost from ADB

The Visakhaptnam-Chennai industrial corridor is set to get another major boost with Asian Development Bank and Andhra Pradesh in negotiations for another $200-million credit line, which is likely to be a retroactive loan.

This would be in addition to the $500 million, on the verge of being closed by ADB, arranged for the development of infrastructure along the 900-km-long coastline dotted by four major infrastructure nodes, according to a senior officer of the Andhra Pradesh government.

These nodes are Vizag, Kakinada, Gangavaram-Kankipadu and Yerpadu-Srikalahastri, where major projects will be taken up.

The State government and the ADB delegation headed by Manoj Sharma, Urban Development Specialist of ADB, met to take the proposal forward. Thus, so far, more than 16 projects spanning the power sector, roads, and other infrastructure have been identified.

Significantly, the State has presented Amaravati, the new capital city of Andhra Pradesh, planned to come up in the Guntur district of the State on the Krishna river banks, as a project that could be dovetailed to the ADB-funded industrial corridor.

This means infrastructure coming up in the capital city will have access to ADB funds. With the government seeking to link up one of the nodes to the industrial corridor, it will become contiguous to the mega infrastructure corridor being at an advanced stage of planning, the official told BusinessLine.

While the detailed project reports (DPRs) of the 16 projects along the industrial corridor are at an advanced stage of finalisation, making them compliant with the stringent ADB norms, they may be offered for development through private sector participation. The negotiations, now underway with ADB, will be finalised providing contours of the loan and projects.

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