ADB signs USD 141.12 mn loan agreement with India to boost infrastructure development in AP

New Delhi: In a statement by the Ministry of Finance on Thursday, it was informed that Asian Development Bank (ADB) signed a loan agreement amounting to USD 141.12 million, marking the second tranche of a multi-tranche financing facility (MFF) programme. The initiative aims to enhance internal infrastructure, including roads, water supply systems, and electricity distribution networks, in three prominent industrial clusters within the state.

The financing will significantly contribute to the economic growth & industrialisation of AP

The financing, which is part of the USD 500 million MFF approved by ADB in 2016, will significantly contribute to the economic growth and industrialisation of Andhra Pradesh. The development of high-quality infrastructure in the Visakhapatnam and Srikalahasthi-Chittoor nodes will boost manufacturing, enhance competitiveness, and generate employment opportunities in the target areas of the project.

Funds will primarily support strengthening of industrial infrastructure in Visakhapatnam node

The funds will primarily support the strengthening of industrial infrastructure in the Visakhapatnam node, focusing on the start-up areas of the Rambilli and Nakkapalli industrial clusters. This entails the development of internal infrastructure within the 160-hectare Rambilli cluster and the 441-hectare Nakkapalli cluster. Furthermore, the project includes widening a 13.8-kilometre stretch of the Atchuthapuram–Anakapalli road and improving a 4.4-kilometre access road to the Nakkapalli cluster. The internal infrastructure will encompass roads, stormwater drains, water supply systems, and electric power distribution systems.

Initiative aims to develop start-up area of the 938-hectare Chittoor–South industrial cluster

In the Srikalahasthi-Chittoor node, the initiative aims to develop the start-up area of the 938-hectare Chittoor–South industrial cluster. Additionally, it involves the improvement of a 9.5-kilometre access road to the Chittoor-South cluster and an 8.7-kilometre access road to the Naidupeta industrial cluster.

Project will support state in rolling out updated marketing action plan for investment promotion

Further, the statement highlighted that among the outputs, the project will support the state in rolling out an updated marketing action plan for investment promotion, and enhance the 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. "For long-term sustainability, the program will formulate a plan to improve the operation and maintenance of start-up industrial clusters and will roll out a toolkit with gender-responsive and socially inclusive guidance to integrate industrial and urban planning including industry housing in areas adjacent to industrial clusters," it added.

(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)