India, ADB ink $375 million loan pact for East Coast Economic Corridor
India and Asian Development Bank (ADB) has signed $375 million pact for loans and grants to develop 800 km Visakhapatnam-Chennai Industrial Corridor.
It is the first phase of a planned 2,500-km East Coast Economic Corridor. Earlier in September 2016, ADB had approved $631 million in loans and grants for the industrial corridor.
- The loans comprises $500 million multitranche facility to build key infrastructure in the four main centres along the corridor — Visakhapatnam, Kakinada, Amaravati, and Srikalahasti (Yerpedu) in Andhra Pradesh.
- The first tranche of $245 million will finance subprojects to develop high-quality internal infrastructure in 2 of the 4 nodes of the corridor — Visakhapatnam and Yerpedu—Srikalahasti.
- It also has $125 million policy-based loan that will be used for capacity development of institutions engaged in corridor management.
- It will also provide support to enhance ease of doing business and for supporting industrial and sector policies to stimulate industrial development.
About East Coast Economic Corridor (ECEC)
- ECEC is India’s first coastal economic corridor along eastern coast. It stretches about 2,500 kms from Kolkata (West Bengal) in the north to Kanyakumari (Tamil Nadu) in the south.
- It will connect long eastern coastline and strategically located ports with the multiple international gateways to connect India with global value chains (GVCs) in East and Southeast Asia.
- It supports Union Government’s flagship Make in India campaign, which aims to boost manufacturing by attracting foreign investment and facilitating the establishment of manufacturing hubs.
- ECEC also aligns with port-led industrialisation under Sagarmala initiative and Act East Policy by linking domestic companies with vibrant global production networks of East and Southeast Asia.
ADB: It is Manila based regional development bank. It was established in 1966 and is owned by 67 members of which 48 are from the Asian region.