The Asian Development Bank (ADB) has approved a $ 631 million loan to develop the proposed Vishakhapatnam – Chennai industrial corridor.
This project is a part of the larger East Coast Economic Corridor (ECEC) that will extend 2,500 km from Kolkata in West Bengal and Tuticorin in Tamil Nadu.
The ADB loan includes $500 million for financing infrastructure like roads, power generation and drinking water, among others, and a $125 million component to help policy interventions by the government.
The first tranche of $245 million is expected to reach the government by the first quarter of 2017.
Significance:
The corridor presents a potential window for boosting economic relations between India and the Mekong countries as well as other South-East Asian countries.
In Eastern India, the East Coast economic corridor is home to many ports, which could serve as gateways and hubs for maritime trade with South-East Asia and beyond.
Closer connectivity between India and the Mekong countries would help unlock the potential of the region by removing constraints and bottlenecks to growth.