Project Name Visakhapatnam-Chennai Industrial Corridor Development Program (Tranche 2)
Project Number 48434-004
Country / Economy India
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 4312-IND: Visakhapatnam-Chennai Industrial Corridor Development Program - Tranche 2
Ordinary capital resources US$ 141.12 million
Operational Priorities OP1: Addressing remaining poverty and reducing inequalities
OP2: Accelerating progress in gender equality
OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability
OP4: Making cities more livable
OP6: Strengthening governance and institutional capacity
OP7: Fostering regional cooperation and integration
Sector / Subsector

Industry and trade / Industry and trade sector development

Transport / Urban roads and traffic management

Water and other urban infrastructure and services / Other urban services

Gender Effective gender mainstreaming
Description The project is the second tranche of the multitranche financing facility (MFF) for Visakhapatnam-Chennai Industrial Corridor Development Program (VCICDP). With the comprehensive support through upstream strategic studies and regular programmatic interventions, tranche 2 will unlock the state's manufacturing potential through fostering industrial agglomeration with holistic infrastructure support, investment promotion, and skills development. The project will continue to support priority infrastructure investments in the Visakhapatnam-Chennai Industrial Corridor. The project will also strengthen climate and disaster resilience and integrate industrial and urban planning for more competitive and livable cities.
Project Rationale and Linkage to Country/Regional Strategy The innovative and multisectoral project has potential to drive economic transformation in the state. It addresses operational priorities in ADB's Strategy 2030 by accelerating progress in gender equality; tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability; making cities more livable; strengthening governance and institutional capacity; and fostering regional cooperation and integration. In line with the strategic pillars of the ADB country partnership strategy for India, 2018-2022, it boosts economic competitiveness to create more and better jobs and stronger climate resilience. Project 2 is included in India's country operations business plan, 2021-2023. The spine of the VCIC aligns with the Bay of Bengal Highway, which connects Cox's Bazar to Thoothukudi and is a priority corridor identified in South Asia Subregional Economic Cooperation program.

Contribution of the manufacturing sector to the state's gross domestic product, trade, and employment increased.

Project Outcome
Description of Outcome

Industrial investment and employment of the Visakhapatnam-Chennai Industrial Corridor (VCIC) increased.

Progress Toward Outcome Project is in initial stage of implementation.
Implementation Progress
Description of Project Outputs

Visakhapatnam industrial node infrastructure strengthened

Srikalahasti-Chittoor industrial node infrastructure strengthened

Sustainable, green, and integrated industrial development enhanced

Status of Implementation Progress (Outputs, Activities, and Issues) Work awarded for start up area development and improvement to the access roads to the industrial clusters. Services of existing project management consultancy has been extended to support the State Government to enhance the sustainable, green and integrated industrial development.
Geographical Location Andhra Pradesh
Safeguard Categories
Environment B
Involuntary Resettlement A
Indigenous Peoples B
Summary of Environmental and Social Aspects
Environmental Aspects The Project is classified as category B for environmental safeguards. Project is assessed to be unlikely to have significant adverse environmental impacts that are irreversible, unprecedented or diverse. All proposed subproject sites are located outside sensitive areas and any impacts during construction and operation can be avoided and/or mitigated through proper design and good high-quality construction and operations and maintenance practices. An EARF developed for MFF in 2016 in accordance with ADB Safeguard Policy Statement 2009 and applicable Government of India laws and regulations has been updated and shall govern preparation and implementation of environmental safeguards in Project 2. All future new and amended subprojects will be prepared and implemented in compliance with EARF. The Updated EARF is disclosed on ADB and project/executing agency websites.
Involuntary Resettlement The Project is Category A for involuntary resettlement and B for indigenous peoples. The resettlement framework and IPPF have been prepared in accordance with ADB's Safeguard Policy Statement 2009, and applicable laws. For the involuntary resettlement category A subprojects (comprising roads and industrial start-up areas), engineering alternatives were explored to minimize involuntary resettlement impacts. APRDC is closely monitoring the identification of resettlement sites for physically displaced persons. The project GRM has been established and functional, and the resettlement nongovernment organizations have been mobilized. An independent external monitoring agency will be hired by the project.
Indigenous Peoples The Project is assessed as Category B for indigenous peoples impacts. One subproject is likely to cause impact to scheduled tribe families who would be losing access to assigned government land, which is being resumed by government. These affected scheduled tribe families belong to Yenadi tribe. No indigenous peoples impact involving direct or indirect impacts to the dignity, human rights, livelihood systems or territories or natural or cultural resources that are used, owned, occupied, or claimed by indigenous peoples as their ancestral domain or asset, is anticipated. The assessed impacts to scheduled tribe populations are involuntary resettlement impacts.
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation Meaningful consultations will be continued to be conducted with the stakeholders
Business Opportunities
Consulting Services All consultant recruitment will adhere to the ADB's Consulting Guidelines (2013, as amended from time to time).
Procurement All procurement of goods and works will adhere to the ADB Procurement Guidelines (2015, as amended from time to time).
Responsible ADB Officer Hosur Viswanath, Ashwin
Responsible ADB Department Sectors Group
Responsible ADB Division Water and Urban Development Sector Office (SG-WUD)
Executing Agencies
Department of Industries & Commerce, Government of Andhra Pradesh
Concept Clearance -
Fact Finding -
MRM 15 Feb 2023
Approval 24 Apr 2023
Last Review Mission -
Last PDS Update 26 Mar 2024

Loan 4312-IND

Approval Signing Date Effectivity Date Closing
Original Revised Actual
24 Apr 2023 23 May 2023 21 Jul 2023 19 Sep 2026 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 214.80 Cumulative Contract Awards
ADB 141.12 24 Apr 2024 117.81 0.00 83%
Counterpart 73.68 Cumulative Disbursements
Cofinancing 0.00 24 Apr 2024 0.00 0.00 0%
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