PIB News Update: Minister of Commerce and Industry, Piyush Goyal has informed that Asian Development Bank (ADB) had prepared Conceptual Development Plan (CDP) for Vizag-Chennai Industrial Corridor (VCIC) and four nodes namely (i) Visakhapatnam, (ii) Machilipatnam, (iii) Donakonda and (iv) Chittoor were identified for development. Amongst these nodes, Visakhapatnam and Chittoor have been prioritized by the Government of Andhra Pradesh (GoAP). Initial master planning of these two nodes were also completed by ADB. As per the proposal of GoAP, National Industrial Corridor Development and Implementation Trust (NICDIT) in its meeting held on 30th August, 2019 has accorded its approval for development of Vishakhapatnam and Chittoor as priority nodes in phase-1 of VCIC.
The loan has been agreed between State Government and Asian Development Bank (ADB). ADB has approved USD 631 million (in loans and grants) for VCIC, comprising a Multi-Tranche Financing Facility (MFF) as follows:
- Two-tranche MFF of USD 500 million to build key infrastructure;
- Two-tranche Policy Based Loan (PBL) of USD 125 million to support policy reforms and institutional development in the State
- Grant of USD 5 million from the multi-donor Urban Climate Change Resilience Trust Fund (UCCRTF) to build climate change resilient infrastructure in Visakhapatnam
- Technical assistance of USD 1 million to help the Andhra Pradesh local government implement policy reforms
Since the project is presently under development stage, time for commencement for construction of the project cannot be ascertained.