 "Asian Development Bank approves $631 mn for East Coast Economic Corridor")
The Asian Development Bank (ADB) approved to dole out $631 million for developing India's first coastal industrial corridor along the Vishakapatnam-Chennai coastline.
Out of the total grant released by the ADB, $500 million would be invested in infrastructural development while the remaining would be used for industrial policy and business promotion.
This is the first phase of development in the 2,500-kilometre-long East Coast Economic Corridor project that is being considered cruciual in spurring development in India's eastern coast and establishing seamless trade links with South and Southeast Asia.
The financial institution estimated a fourfold increase worth $64 billion in the annual industrial output along the corridor by 2025.
The 800-kilometre-long coastline, extending from Kolkata in West Bengal to Tuticorin in Tamil Nadu, will connect four regional economic hubs-Visakhapatnam, Kakinada, Amaravati, and Yerpedu-Srikalahasti-and other neraby industrial areas.
The Urban Climate Change Resilience Trust Fund will be making a grant of $6 million, which will be utilised in building infrastructure reislilent to climate change and for managing costs incurred by the local government along the corridor.
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In addition to this, the Indian government will also make an investment of $215 million to the project that is going to cost $846 million.
As part of the project's developmental work, state highways and roads would be constructed apart from establishing water treatment plants, water pipes, storm drains, power substations and power distribution lines.
"By combining state-of-the-art industrial clusters, efficient transport, and reliable water and power supplies with a skilled workforce and good business policies, we expect the Visakhapatnam-Chennai industrial corridor to become a favored investment destination," said Manoj Sharma, Principal Urban Development Specialist, in ADB's South Asia Department.
India's National Manufacturing Policy is aiming to increase its manufacturing capacity so that it increases its contribution to the national gross domestic product (GDP) to 25% by 2022 much like its neghbours- People's Republic of China, Malaysia, and Vietnam.Currently, manufacturing provides around 15% the country's GDP.
The programme will also focus on increasing women's participation in the industrial workforce. Skill-based training programmes will be conducted for around 25,000 workers, entrepreneurs, and students.