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 proposed 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 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 2 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
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)
Geographical Location Andhra Pradesh
Safeguard Categories
Environment B
Involuntary Resettlement A
Indigenous Peoples B
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
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 Matsunaga, Akira
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 27 Apr 2023

LoanĀ 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 03 Sep 2023 50.54 0.00 36%
Counterpart 73.68 Cumulative Disbursements
Cofinancing 0.00 03 Sep 2023 0.00 0.00 0%
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