India, ADB sign $141.12 million loan for industrial corridor development in Andhra Pradesh
1 min read 25 May 2023, 09:08 PM ISTThe loan will be utilized to enhance road networks, water supply systems, and electricity distribution networks, fostering industrialization and job creation in the targeted areas
PremiumNew Delhi: The Indian government and the Asian Development Bank (ADB) on Thursday signed a $141.12 million loan agreement aimed at supporting the development of high-quality internal infrastructure in three industrial clusters in the state of Andhra Pradesh.
The loan will be utilized to enhance road networks, water supply systems, and electricity distribution networks, fostering industrialization and job creation in the targeted areas.
“This financing is the second tranche of the $500 million multi-tranche financing facility (MFF) for the program approved by ADB in 2016 to build infrastructure in three industrial clusters in the Visakhapatnam and Srikalahasthi-Chittoor nodes in the state," the Ministry of Finance said.
By adopting a multi-sectoral approach, the ADB financing aims to boost manufacturing, improve competitiveness, and increase the manufacturing sector’s contribution to Andhra Pradesh’s gross domestic product.
The funds will be utilized to strengthen industrial infrastructure in the Visakhapatnam node, including the development of internal infrastructure in the Rambilli and Nakkapalli industrial clusters spanning 160 hectares and 441 hectares, respectively.
Additionally, the project will involve widening a 13.8-kilometer stretch of the Atchuthapuram–Anakapalli road and improving a 4.4-kilometer access road to the Nakkapalli cluster. In the Srikalahasthi-Chittoor node, the loan will support the development of the Chittoor-South industrial cluster, covering an area of 938 hectares, and enhance access roads to both the Chittoor-South and Naidupeta industrial clusters.
Among the outputs, the project will support the state in rolling out an updated marketing action plan for investment promotion, and enhance skills of people including the socially and economically vulnerable sections.
Additionally, the initiative will focus on enhancing the resilience of industrial clusters to extreme weather events by establishing operational guidelines for a green corridor model and developing a comprehensive disaster risk management plan.
“For long term sustainability, the program will formulate a plan to improve operation and maintenance of start-up industrial clusters, and will roll out a toolkit with gender-responsive and socially inclusive guidance to integrate industrial and urban planning including industry housing in areas adjacent to industrial clusters," it said.
