The Asian Development Bank (ADB) and the Government of India signed an agreement for a $141.12 million loan to support the development of high-quality internal infrastructure such as roads, water supply systems and electricity distribution networks in three industrial clusters in Andhra Pradesh, according to information provided by the Finance Ministry today.
This agreement signed on Tuesday is for the second tranche of the $500 million financing facility under the program approved by ADB in 2016 to build infrastructure in three industrial clusters in the Visakhapatnam and Srikalahasthi-Chittoor nodes in the state.
The ADB financing through a multi-sectoral approach will help the state in promoting industrialization to increase the share of manufacturing in the state’s gross domestic product, build competitiveness and creating jobs in the project target areas.
This financing will help strengthen industrial infrastructure in Visakhapatnam node with the development of internal infrastructure in the start-up area of the 160-hectare (ha) Rambilli and 441-ha Nakkapalli industrial clusters, widening of 13.8-kilometer (km) of the Atchuthapuram–Anakapalli road and improvement of 4.4-km access road to the Nakkapalli cluster. Internal infrastructure in the proposed clusters will include internal roads, storm water drains, water supply systems, and electric power distribution systems, the finance ministry statement said.
In Srikalahasthi-Chittoor node, the project will help develop the start-up area of the 938-ha Chittoor–South industrial cluster, and improve a 9.5-km access road to the Chittoor-South industrial cluster and an 8.7-km access road to the Naidupeta industrial cluster, the statement added.
Among the outputs, the project will support the state in rolling out an updated marketing action plan for investment promotion, and enhance skills of people including the socially and economically vulnerable sections. To strengthen industrial cluster resilience under extreme weather, the project will help establish a green corridor model operational guidelines and develop a disaster risk management plan.