India and ADB have signed USD 375 million pact for loans and grants to develop 800—km Visakhapatnam—Chennai Industrial Corridor, which is the first phase of a planned 2,500-km East Coast Economic Corridor.
The Asian Development Bank has approved loans comprising a USD 500 million multitranche facility to build key infrastructure in the four main centers along the corridor — Visakhapatnam, Kakinada, Amaravati, and Yerpedu—Srikalahasti in Andhra Pradesh.
The first tranche of USD 245 million that was signed will finance subprojects to develop high-quality internal infrastructure in 2 of the 4 nodes of the corridor — Visakhapatnam and Yerpedu—Srikalahasti.
Another component of the approved ADB funds that the signatories signed was a USD 125 million policy—based loan that will be used for capacity development of institutions engaged in corridor management, provide support to enhance ease of doing business and for supporting industrial and sector policies to stimulate industrial development.
Agreement was also signed with ADB for a USD 5 million grant from the multi-donor Urban Climate Change Resilience Trust Fund that is managed by ADB to build climate change resilient infrastructure.
Manila based ADB, established in 1966, is owned by 67 members — 48 from the Asian region.