fbpx 48434-003: Visakhapatnam-Chennai Industrial Corridor Development Program - Project 1 | Asian Development Bank

India: Visakhapatnam-Chennai Industrial Corridor Development Program - Project 1

Sovereign (Public) Project | 48434-003 Status: Active

The Visakhapatnam-Chennai Industrial Corridor Development Program (VCICDP) will complement the ongoing efforts of the Government of Andhra Pradesh (GoAP) to enhance industrial growth and create high quality jobs. The VCICDP comprises a multitranche financing facility (MFF), a grant, and a policy-based loan (PBL). The MFF and the grant will support priority infrastructure investments in the Visakhapatnam- Chennai Industrial Corridor (VCIC), and the PBL will support policy reforms and institutional development in the state.

Project Details

Project Officer
Hosur Viswanath, Ashwin South Asia Department Request for information
Country
  • India
Modality
  • Grant
  • Loan
Sector
  • Industry and trade
 
Project Name Visakhapatnam-Chennai Industrial Corridor Development Program - Project 1
Project Number 48434-003
Country India
Project Status Active
Project Type / Modality of Assistance Grant
Loan
Source of Funding / Amount
Grant 0495-IND: Visakhapatnam-Chennai Industrial Corridor Development Program - Tranche 1
Urban Climate Change Resilience Trust Fund under the Urban Financing Partnership Facility US$ 5.00 million
Loan 3430-IND: Visakhapatnam-Chennai Industrial Corridor Development Program - Project 1
Ordinary capital resources US$ 245.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Regional integration
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Partnerships
Private sector development
Sector / Subsector

Energy / Electricity transmission and distribution

Industry and trade / Large and medium industries

Transport / Road transport (non-urban)

Water and other urban infrastructure and services / Urban water supply

Gender Equity and Mainstreaming Effective gender mainstreaming
Description The Visakhapatnam-Chennai Industrial Corridor Development Program (VCICDP) will complement the ongoing efforts of the Government of Andhra Pradesh (GoAP) to enhance industrial growth and create high quality jobs. The VCICDP comprises a multitranche financing facility (MFF), a grant, and a policy-based loan (PBL). The MFF and the grant will support priority infrastructure investments in the Visakhapatnam- Chennai Industrial Corridor (VCIC), and the PBL will support policy reforms and institutional development in the state.
Project Rationale and Linkage to Country/Regional Strategy

While India has seen a rapid structural transformation and achieved strong economic growth since 1991, one of the most pressing policy challenges is to create more productive and well-paying jobs in manufacturing and services which has lagged with a contribution GDP. India has adopted an industrial corridor approach to stimulate manufacturing and an Act East policy to integrate the Indian economy with Asia's dynamic global production networks. The industrial corridor approach involves the creation of an efficient multimodal transport network supported by quality infrastructure and logistics within a defined geography, and a policy framework that facilitates business operations for integration with global production networks.

In line with these policies, the government and the Asian Development Bank (ADB) identified the East Coast Economic Corridor (ECEC) India's first coastal corridor extending over 2,500 kilometers (km) from Kolkata in West Bengal to Tuticorin in Tamil Nadu. The VCIC, which covers more than 800 km of coastline in Andhra Pradesh, is proposed to be developed as the first phase of the ECEC. In the state of Andhra Pradesh, which has 49.4 million people making it the 10th most populous state in India, the manufacturing sector contributes 12% to the state's GDP lagging the national average of 15%. There is a pertinent need to usher in greater degree of industrialization in the state by addressing challenges such as low industrial diversification, and concentration of manufacturing sector employment in small, labor-intensive, informal enterprises with low skills, productivity, and earnings. Key infrastructure in industrial clusters remains inadequate to support the burgeoning demand for efficient industrial infrastructure and robust skills inventory. It also needs to further improve its procedures for doing business, labor-related laws, land management, and taxation laws if it is to enhance its competitiveness and benchmark itself with other countries in the region such as Singapore, the Republic of Korea, and Malaysia. The VCICDP is in line with ADBs country partnership strategy for India.

Impact Contribution of the manufacturing sector to the gross domestic product, trade, and employment of GoAP increased
Project Outcome
Description of Outcome Growth and competitiveness of the VCIC enhanced
Progress Toward Outcome The project is under implementation with good progress. It would help on timely achieving the outcomes.
Implementation Progress
Description of Project Outputs

Visakhapatnam Chennai Industrial Corridor infrastructure strengthened and more resilient

Institutional capacities, human resources, and program management strengthened

Status of Implementation Progress (Outputs, Activities, and Issues) 26 km of internal roads improved in Naidupeta cluster. 58 Km of storm water drains constructed in Naidupeta cluster.1 MLD CETP package awarded and work under progress. 46 km of water pipelines constructed in industrial clusters. Road widening work is under progress. 75% of work completed for Rachaganneri substation. 76% of work completed for 400 kv,200 kv and 132 kv transmission lines. 51 km out of 365 km of drinking water pipelines laid. 1019/64,800 meters installed in GVMC area.Climate change resilience plan prepared. Being complied with for the submission of QPRs and audit reports. Project development mechanism with time-bound action plan is ongoing. Skill enhancement programs conducted for at least 5,000 persons are ongoing. Capacity development programs (including training on gender and monitoring of gender-dis-aggregated data, conducted for more than 500 staff of executing and/or implementing agencies) are ongoing. Investor promotion plan development is ongoing.
Geographical Location Andhra Pradesh
Safeguard Categories
Environment B
Involuntary Resettlement A
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects Project 1 of the MFF is categorized as B for environment in accordance with the Safeguard Policy Statement. An environmental assessment and review framework has been prepared for the MFF in line with the Safeguard Policy Statement and applicable laws. Four initial environmental examination reports prepared for Project 1 subprojects show that the subprojects are not likely to cause any significant adverse environmental impacts, and any impacts during construction and operation can be mitigated through appropriate design and good practices. Public consultations were conducted for all Project 1 subprojects during preparation of the MFF. The initial environmental examinations, including the environmental management plan, are considered sufficient to meet the environmental assessment requirements of ADB and the government. The GoAP has established grievance redress mechanism in respective Project Implementation Units (PIUs). No grievances have been reported so far related to the subprojects. None of the subprojects are close to critical habitats or forest areas.
Involuntary Resettlement Project 1 of the MFF is categorized as A for involuntary resettlement. A resettlement framework has been prepared in accordance with ADB's Safeguard Policy Statement (2009) and applicable laws. Four resettlement plans and two due diligence reports for Project 1 havebeen prepared in line with the Safeguard Policy Statement and will be updated after detailed designs. Project 1 resettlement impacts comprise 2,632 affected persons, including 1,182 significantly affected, the acquisition of 14.5 hectares of private land, and impact on 367 structures. The proposed mitigation measures, including capacity building of the PMU and PIUs, are adequate to address the assessed risks. The safeguard documents are disclosed on the ADB website, and relevant information will be shared with the affected persons. The resettlement process for Project 1 has commenced. The compensation payment process is ongoing. Information on affected persons and compensation payments is being reported regularly in the semi-annual social safeguards monitoring reports. The GoAP has established grievance redress mechanism in respective Project Implementation Units (PIUs). No grievances have been reported so far related to the subprojects.
Indigenous Peoples Project 1 of the MFF is categorized as C for indigenous peoples. An indigenous peoples planning framework has been prepared in accordance with ADB's Safeguard Policy Statement (2009) and applicable laws.
Stakeholder Communication, Participation, and Consultation
During Project Design Public consultations were conducted for all Project 1 subprojects during preparation of the MFF.
During Project Implementation Meaningful and widespread consultations were held and will continue with all communities in the project area.
Business Opportunities
Consulting Services The project management unit will recruit consultants in accordance with ADB's Guidelines on the Use of Consultants (2013, as amended from time to time). Consulting services include project management and supervision, road safety awareness, and resettlement monitoring.
Procurement Procurement of civil works and goods will be carried out in accordance with ADB s Procurement Guidelines (2015, as amended from time to time).
Responsible ADB Officer Hosur Viswanath, Ashwin
Responsible ADB Department South Asia Department
Responsible ADB Division India Resident Mission
Executing Agencies
Department of Industries & Commerce, Government of Andhra Pradesh
[email protected]
North H Block, 3rd Floor, AP Secretariat
Hyderabad, 500022
Timetable
Concept Clearance -
Fact Finding -
MRM 07 Apr 2016
Approval 26 Sep 2016
Last Review Mission -
Last PDS Update 26 Jun 2019

Grant 0495-IND

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
26 Sep 2016 23 Feb 2017 05 May 2017 30 Jun 2023 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 5.00 Cumulative Contract Awards
ADB 0.00 26 Sep 2016 0.00 2.77 55%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 5.00 26 Sep 2016 0.00 0.18 4%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Unsatisfactory - - Partly satisfactory - Unsatisfactory

Loan 3430-IND

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
26 Sep 2016 23 Feb 2017 05 May 2017 30 Jun 2023 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 353.00 Cumulative Contract Awards
ADB 245.00 26 Sep 2016 234.30 0.00 96%
Counterpart 108.00 Cumulative Disbursements
Cofinancing 0.00 26 Sep 2016 97.58 0.00 40%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Unsatisfactory - - Partly satisfactory - Unsatisfactory

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Title Document Type Document Date
Visakhapatnam-Chennai Industrial Corridor Development Program – Project 1: Audited Project Financial Statements (April 2018-March 2019) Audited Project Financial Statements Oct 2019
Visakhapatnam-Chennai Industrial Corridor Development Program – Project 1: Audited Project Financial Statements (April 2017-March 2018) Audited Project Financial Statements Jan 2019
Visakhapatnam-Chennai Industrial Corridor Development Program – Project 1: Audited Project Financial Statements (23 February 2016-31 March 2018) Audited Project Financial Statements Sep 2018
Visakhapatnam-Chennai Industrial Corridor Development Program - Project 1: Procurement Plan Procurement Plans Jul 2018
Program Agreement for Loan 3424-IND: Visakhapatnam-Chennai Industrial Corridor Development Program Project/Program Agreements Feb 2017
Grant Agreement (Externally Financed) for Grant 0495-IND: Visakhapatnam-Chennai Industrial Corridor Development Program - Project 1 Grant Agreement Feb 2017
Project Agreement for Loan 3430 and Grant 0495-IND: Visakhapatnam-Chennai Industrial Corridor Development Program - Project 1 Project/Program Agreements Feb 2017
Loan Agreement (Ordinary Operations) for Loan 3430-IND: Visakhapatnam-Chennai Industrial Corridor Development Program - Project 1 Loan Agreement (Ordinary Resources) Feb 2017
Loan Agreement (Ordinary Operations) for Loan 3424-IND: Visakhapatnam-Chennai Industrial Corridor Development Program Loan Agreement (Ordinary Resources) Feb 2017
Visakhapatnam-Chennai Industrial Corridor Development Program - Project 1: Project Data Sheet (हिन्दी) Translated PDS Sep 2016
Visakhapatnam-Chennai Industrial Corridor Development Program: Report and Recommendation of the President Reports and Recommendations of the President Aug 2016

Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

Title Document Type Document Date
Visakhapatnam-Chennai Industrial Corridor Development Program – Project 1: Health and Safety Plan in Response to COVID-19 Pandemic Addendum to the Initial Environmental Examination Initial Environmental Examination Jul 2020
Visakhapatnam-Chennai Industrial Corridor Development Program - Project 1: Social Monitoring Report (July-December 2019) Social Monitoring Reports Apr 2020
Visakhapatnam-Chennai Industrial Corridor Development Program – Project 1: Environmental Monitoring Report (July-December 2019) Environmental Monitoring Reports Mar 2020
Visakhapatnam-Chennai Industrial Corridor Development Program - Project 1: Social Monitoring Report (January-June 2019) Social Monitoring Reports Oct 2019
Visakhapatnam-Chennai Industrial Corridor Development Program – Project 1: Social Monitoring Report (July-December 2018) Social Monitoring Reports May 2019
Visakhapatnam-Chennai Industrial Corridor Development Program - Project 1: Environmental Monitoring Report (July-December 2018) Environmental Monitoring Reports Mar 2019
Visakhapatnam–Chennai Industrial Corridor Development Program – Project 1: Social Monitoring Report (January-June 2018) Social Monitoring Reports Mar 2019
Visakhapatnam-Chennai Industrial Corridor Development Program - Project 1: Environmental Monitoring Report (May 2017-June 2018) Environmental Monitoring Reports Mar 2019
Visakhapatnam-Chennai Industrial Corridor Development Program - Project 1: External Connectivity to Nakkapalli Industrial Cluster Road - Initial Environmental Examination Initial Environmental Examination Feb 2019
Visakhapatnam-Chennai Industrial Corridor Development Program - Project 1: Common Effluent Treatment Plant (Naidupeta Subproject) Initial Environmental Examination Initial Environmental Examination Feb 2019
Visakhapatnam-Chennai Industrial Corridor Development Program - Project 1: Connectivity to Routhusuramala Cluster - Initial Environmental Examination Initial Environmental Examination Feb 2019
Visakhapatnam-Chennai Industrial Corridor Development Program - Project 1: Augmenting Utility Services (Naidupeta Subproject) Initial Environmental Examination Initial Environmental Examination Feb 2019
Visakhapatnam-Chennai Industrial Corridor Development Program - Project 1: External Connectivity to Naidupeta Industrial Cluster Road - Initial Environmental Examination Initial Environmental Examination Feb 2019
Visakhapatnam-Chennai Industrial Corridor Development Program - Project 1: Bulk Water Facility and Summer Storage (Naidupeta Subproject) Initial Environmental Examination Initial Environmental Examination Feb 2019
Visakhapatnam-Chennai Industrial Corridor Development Program - Project 1: Visakhapatnam-Power Transmission and Distribution System - Initial Environmental Examination Initial Environmental Examination Feb 2019
Visakhapatnam-Chennai Industrial Corridor Development Program - Project 1: Rajanagaram to Samarlakota Road Subproject - Initial Environmental Examination Initial Environmental Examination Feb 2019
Visakhapatnam-Chennai Industrial Corridor Development Program - Project 1: Naidupeta Node-Power Transmission and Distribution System - Initial Environmental Examination Initial Environmental Examination Feb 2019
Visakhapatnam-Chennai Industrial Corridor Development Program - Project 1: 24x7 Water Supply in North West Area of Visakhapatnam - Initial Environmental Examination Initial Environmental Examination Jan 2019
Visakhapatnam-Chennai Industrial Corridor Development Program - Project 1: 3 MW Power Grid Connected Floating Type Solar Pv Power on Meghadrigedda Reservoir Initial Environmental Examination Initial Environmental Examination Oct 2018
Visakhapatnam-Chennai Industrial Corridor Development Program - Project 1: Supply of Non-motorized Traffic Zones and Introduction of e-Vehicles in Greater Visakhapatnam City Land Acquisition and Resettlement Due Diligence Report Safeguards Due Diligence Reports Oct 2018
Visakhapatnam-Chennai Industrial Corridor Development Program - Project 1: 3 MWp Solar Energy Park with Floating Panels Meghadrigedda Reservoir Land Acquisition and Resettlement Due Diligence Report Safeguards Due Diligence Reports Oct 2018
Visakhapatnam-Chennai Industrial Corridor Development Program - Project 1: Mudasarlova Lake Development Initial Environmental Examination Initial Environmental Examination Oct 2018
Visakhapatnam-Chennai Industrial Corridor Development Program - Project 1: Procurement of e-Vehicles Environmental Due Diligence Report Safeguards Due Diligence Reports Oct 2018
Visakhapatnam-Chennai Industrial Corridor Development Program - Project 1: Mudasarlova Reservoir Catchment Area Land Acquisition and Resettlement Due Diligence Report Safeguards Due Diligence Reports Sep 2018
Visakhapatnam–Chennai Industrial Corridor Development Program – Project 1: Social Monitoring Report (July-December 2017) Social Monitoring Reports Aug 2018
Visakhapatnam-Chennai Industrial Corridor Development Program - Project 1: Naidupeta Economic Zone Subproject (Package: VCICDP/APIIC/04) Initial Environmental Examination Initial Environmental Examination Sep 2017
Visakhapatnam-Chennai Industrial Corridor Development Program - Project 1: Naidupeta Economic Zone Subproject (Package: VCICDP/APIIC/03) Initial Environmental Examination Initial Environmental Examination Sep 2016

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.

Contracts Awarded

Contract Title Approval Number Contract Date Contractor Contractor Address Executing Agency Contract Description Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
PROVIDING WATER SUPPLY TO PRIORTIZED INDUSTRIAL CLUSTER IN THE STATE OF ANDHRA PRADESH SOUTHERN REGION. Loan 3430 22 May 2020 KLSR - NCC JV HNO.2-56/D/213/9B&18A,FLAT NO.43,KISR TOWERS,MADHAPUR,HYDERABAD-500081 INDIA Dept of Industries & Comm, Govt of Andhra Pradesh CONSTRUCTION 83,414,333.62 55,435,586.26
PROJECT MANAGEMENT & CONSTRUCTION SUPERVISION CONSULTANT (PMSC/01) Loan 3430 09 Oct 2018 MOTT MACDONALD PL IN ASSOC.ERNST & YOUNG LLP LOGIX TECHNO PARK, TC, 5-6F, PL.5, S127, NOIDA 20 1301, U.P. INDIA Dept of Industries & Comm, Govt of Andhra Pradesh Consulting Services 8,743,019.00 7,589,816.00
WIDENING & STRENGTHENING OF SAMARLAKOTA-RAJANAGARA M RD. (SH148) TO DIV. 4 LANE FROM KM26.40-56.40 IN EAST GODAVARI DIST. (APRDC/NCB/2017-1) Loan 3430 09 Oct 2018 BSR INFRATECH INDIA LTD.+BSCPL INFRA.LTD. JV #851,D BLOCK, 15TH CROSS, SAHAKARANAGAR, BENGALURU-560 092 INDIA Dept of Industries & Comm, Govt of Andhra Pradesh CONSTRUCTION 40,367,551.00 31,485,640.00
ESTAB. OF 1 MLD CETP ON EPC MODE INCL. O&M FOR 10 YRS. AT MP SEZ, NAIDUPETA SPSR NELLORE DISTRICT (VCICDP-APIIC/01) Loan 3430 09 Oct 2018 RAMKY ENVIRO ENGINEERS LIMITED 13F., RAMKY GRANDIOSE, RAMKY TOWER GACHIBOWLI, HYDERABAD 500 032 INDIA Dept of Industries & Comm, Govt of Andhra Pradesh TURNKEY 16,636,683.00 7,216,555.00
AUGMENTING POWER DISTRIBUTION CAPACITY FOR MEETING INDUSTRY DEMAND AT ATCHUTHAPURAM, CHANDANADA AND KAPULUPPADA IN VISAKHAPATNAM (VCICDP-APTRANSCO/01) Loan 3430 26 Jun 2018 RAHUL CABLES PL IN JV W/ LS CABLE & SYS.LTD. 114-115, 1ST FLR, AURORA TOWERS, EAST WI NG, M.G. RD., PUNE-411001, INDIA INDIA Dept of Industries & Comm, Govt of Andhra Pradesh CONSTRUCTION 40,335,435.00 31,165,030.00
DISTRIBUTION NETWORK IMPROVEMENTS FOR NRW REDUCTI ON & 24X7 WATER SUPPLY IN GVMC AREA (VCICDP-GVMC/0 2) Loan 3430 27 Mar 2018 NCC LIMITED NCC HOUSE, MADHAPUR, HYDERABAD, ANDRA PRADESH, INDIA INDIA Dept of Industries & Comm, Govt of Andhra Pradesh TURNKEY 59,146,376.00 42,659,315.00
AUGMENTING POWER DIST'N.CAP.FOR MTG. IND. DEMAND AT RACHAGANNERI, NAIDUPETA & YERPEDU LOCATIONS (VCICDP/ APTRANSCO/03) Loan 3430 22 Mar 2018 KALPATARU POWER TRANSMISSION LIMITED 101,PART III,G.I.D.C ESTATE, SECTOR-28, GANDHINAGAR-382 028, GUJARAT, INDIA INDIA Dept of Industries & Comm, Govt of Andhra Pradesh CONSTRUCTION 51,139,276.00 40,230,892.00
PROVIDING BULK WATER FACILITY & SUMMER STORAGE IN NAIDUPETA INDUSTRIAL CLUSTER,SPSR NELLORE DIST., AP,INDIA(VCICDP/APIIC/04) Loan 3430 22 Mar 2018 SRR PROJECTS PRIVATE LIMITED #303/A,MLA COLONY,RD.NO.12,BANJARA HILLS ,HYDERABAD-500034 INDIA Dept of Industries & Comm, Govt of Andhra Pradesh CONSTRUCTION 11,435,192.00 8,995,981.00