ADB clears $631 million loan for Visakhapatnam-Chennai Industrial Corridor

ADB has approved a $631 million loan for the construction of an industrial corridor between Visakhapatnam and Chennai, part of India’s first coastal industrial corridor running from Kolkata in West Bengal to Tuticorin in Tamil Nadu. The total cost of the project is $846 million. The remaining $215 million will be funded by the Andhra Pradesh government. Loans and grants from ADB include a $500 million two-tranche facility to build key infrastructure and a $125 million two-tranche loan to help develop industrial policies and promote businesses. There will also be a $5 million grant to build climate-resilient infrastructure and a $1 million technical assistance grant to help the Andhra Pradesh government manage the corridor. The loan is for a period of 25 years at an interest rate of 0.5 per cent plus Libor. Work on the project is expected to be completed by 2031.