India, ADB Sign $141.12 Million Loan Agreement to Develop Industrial Corridor in Andhra Pradesh

The funds by ADB will be utilised to strengthen industrial infrastructure in the Visakhapatnam node.

On Thursday, India and the Asian Development Bank (ADB) inked a $141.12 million loan agreement with the aim of supporting the development of high-quality internal infrastructure in three industrial clusters in Andhra Pradesh. The funds would be used to improve road networks, water supply systems, and electricity distribution networks, in addition to fostering industrialization and job creation.

“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 Srikalahasti-Chittoor nodes in the state,” the Ministry of Finance said.

ADB’s other plans

The ADB, with its funds, is also looking at boosting manufacturing, improving competitiveness, and increasing the manufacturing sector’s contribution to the state’s GDP. Hence, the load would focus on strengthening industrial infrastructure in the Visakhapatnam node.

In terms of the enhancement of road networks, the funds would be utilised to widen a 13.8-kilometer stretch of the Atchutapuram-Anakapalli road and improve a 4.4-kilometer access road to the Nakkapalli cluster. In the Srikalahasti-Chittoor node. Also, the Chittoor-South industrial cluster would be developed, giving more access roads to both the Chittoor-South and Naidupeta industrial clusters.

Among other outputs, the state would also roll out an updated marketing action plan for investment promotion and target enhancing the resilience of industrial clusters to extreme weather events. A green corridor model and comprehensive disaster risk management plan would be undertaken.

“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.


Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button