ADB, India sign $141.12-million loan for industrial corridor development in Andhra

This financing is the second tranche of the USD 500 million multi-tranche financing facility (MFF) for the programme approved by ADB in 2016 to build infrastructure in three industrial clusters in the Visakhapatnam and Srikalahasthi-Chittoor nodes in the state, finance ministry said.

Asian Development Bank (ADB) and the Indian government on Thursday signed a $141.12-million loan to support the development of high-quality internal infrastructure in Andhra Pradesh (AP).

The funding is for construction of roads, water supply systems and electricity distribution network in three industrial clusters in the state, the finance ministry said in a statement.

This financing is the second tranche of the USD 500 million multi-tranche financing facility (MFF) for the programme approved by ADB in 2016 to build infrastructure in three industrial clusters in the Visakhapatnam and Srikalahasthi-Chittoor nodes in the state, it said. The ADB financing through adopting multi-sectoral approach will help the state in promoting industrialisation to increase the share of manufacturing in the state's gross domestic product, build competitiveness and create jobs in the project target areas, it said.

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, it said. To strengthen industrial cluster resilience under extreme weather, it said, the project will help establish a green corridor model operational guidelines and develop a disaster risk management plan.

For long term sustainability, the programme will formulate a plan to improve operation and maintenance of startup industrial clusters, and will roll out a tool kit with gender-responsive and socially inclusive guidance to integrate industrial and urban planning including industry housing in areas adjacent to industrial clusters.