East Coast Economic Corridor Current Affairs
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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.
Multilateral funding agency Asian Development Bank (ADB) has approved $631 million loan for building India’s first coastal industrial corridor between Visakhapatnam (Vizag) and Chennai.
The fund will help develop the first key 800-km section of the planned 2,500-km East Coast Economic Corridor.
- The coastal industrial corridor is expected to boost development on eastern coast of India and enable seamless trade links with other parts of Southeast and South Asia.
- The total cost of the project is 846 million dollars and work on it is expected to be over by 2031. The remaining 215 million dollars will be funded by Andhra Pradesh government.
- The loan fund from ADB will help to build state-of-art industrial clusters, roads, efficient transport, reliable water and power supplies with skilled workforce and good business policies.
- The new infrastructure will be built in the four main centres — Visakhapatnam, Amaravati, Kakinada and Yerpedu-Srikalahasti — along the corridor.
- It will include 138 km of state highways and roads, 10 power substations, 488 km of drinking water pipeline, 47 km of storm drains, water treatment plants, and 281 km of power transmission and distribution lines.
About the Visakhapatnam-Chennai Industrial Corridor (VCIC)
- The VCIC section of the East Coast Economic Corridor (ECEC) connects four economic hubs and nine industrial clusters. It will be first industrial corridor developed along India’s coast.
- The ECEC will extend from Kolkata (West Bengal) in the northeast of India to Tuticorin (Tamil Nadu) near the southern-most point of the country.
About Asian Development Bank (ADB)
- The ADB is a regional development bank established on 19 December 1966. It promotes social and economic development in Asia.
- It is headquartered in Manila, Philippines. ADB now has 67 members, of which 48 are from within Asia and the Pacific and 19 outside.
- The ADB has been modelled closely on the World Bank. It has similar weighted voting system where votes are distributed in proportion with members’ capital subscriptions.
- As of 2014, Japan is the largest shareholder (capital subscription) of ADB having 15.7% shares. US holds 15.6%, China (6.5%), India (6.4%), and Australia (5.8%).