India : Visakhapatnam-Chennai Industrial Corridor Development Program - Project 1
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
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Project Officer
Hosur Viswanath, Ashwin
South Asia Department
Request for information -
Country/Economy
India -
Modality
-
Sector
- Industry and trade
| Project Name | Visakhapatnam-Chennai Industrial Corridor Development Program - Project 1 | ||||||||
| Project Number | 48434-003 | ||||||||
| Country / Economy | India |
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| Project Status | Active | ||||||||
| Project Type / Modality of Assistance | Grant Loan |
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| Source of Funding / Amount |
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| Strategic Agendas | Environmentally sustainable growth Inclusive economic growth Regional integration |
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| Drivers of Change | Gender Equity and Mainstreaming Governance and capacity development Partnerships Private sector development |
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| 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 |
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| Gender | 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 corridorextending 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 GDPlagging 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. |
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| Impact | Contribution of the manufacturing sector to the gross domestic product, trade, and employment of GoAP increased |
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| Project Outcome | |
|---|---|
| Description of Outcome | Growth and competitiveness of the VCIC enhanced |
| Progress Toward Outcome | Works are ongoing. |
| 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) | Investor promotion plan is developed. Project development mechanism with time-bound action plan is being established. Satisfactory quarterly progress reports and audit reports are being submitted and gender-disaggregated data are being collected. Skill enhancement programs are being conducted. Capacity development programs, including training on gender and monitoring of gender-disaggregated data are being conducted. 31 km of internal roads and 65.8 km of storm water drains constructed in Naidupeta industrial cluster. 1 MLD common effluent treatment plant constructed and commissioned in Naidupeta industrial cluster. 12,093 water meters installed; 256 km of drinking water pipelines laid by Greater Visakhapatnam Municipal Corporation. Climate change resilience plan for Visakhapatnam will be prepared for integrated water management solution. Samarlakota-Rajanagaram road widening with gender-responsive design features works are under progress. 114 km overhead stringing and 8 km underground cable installed in industrial clusters. Three substation works completed and commissioned at Naidupeta Industrial Area and works are in progress at Visakhapatnam Industrial Area. 19.9 km of water pipelines constructed in industrial clusters. Bulk water supply works are in progress. |
| 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. |
| 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 have been 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 | |
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| 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 (INRM) |
| Executing Agencies |
Department of Industries & Commerce, Government of Andhra Pradesh |
| Timetable | |
|---|---|
| Concept Clearance | - |
| Fact Finding | - |
| MRM | 07 Apr 2016 |
| Approval | 26 Sep 2016 |
| Last Review Mission | - |
| Last PDS Update | 12 Dec 2022 |
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 Jul 2023 | 0.00 | 4.94 | 99% |
| Counterpart | 0.00 | Cumulative Disbursements | |||
| Cofinancing | 5.00 | 26 Jul 2023 | 0.00 | 3.38 | 68% |
| Status of Covenants | ||||||
|---|---|---|---|---|---|---|
| Category | Sector | Safeguards | Social | Financial | Economic | Others |
| Rating | Satisfactory | Satisfactory | - | Satisfactory | - | Satisfactory |
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 | 31 Dec 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 Jul 2023 | 228.38 | 0.00 | 93% |
| Counterpart | 108.00 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 26 Jul 2023 | 147.15 | 0.00 | 60% |
| Status of Covenants | ||||||
|---|---|---|---|---|---|---|
| Category | Sector | Safeguards | Social | Financial | Economic | Others |
| Rating | Satisfactory | Satisfactory | - | Satisfactory | - | Satisfactory |
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.
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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.
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.
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.
Tenders
Contracts Awarded
| Contract Title | Approval Number | Contract Date | Contractor | Address | Executing Agency | Total Contract Amount (US$) | Contract Amount Financed by ADB (US$) |
|---|---|---|---|---|---|---|
| Road Safety Awareness Consultants | Loan 3430 | 05 Aug 2021 | ATANE Engineers Architect and Land Surveyors Professional Corporations JV | #6-3-1112/K4, 4th Floor, White Diamond, Behind Landmark/Westside building, B.S Maqtha, Begumpet, Hyderabd-500016 | Dept of Industries & Comm, Govt of Andhra Pradesh | 1,250,103.45 | 1,033,128.67 |
| 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 | 83,414,333.62 | 55,435,586.26 |
| 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 | 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 | 16,636,683.00 | 7,216,555.00 |
| 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 | 8,743,019.00 | 7,589,816.00 |
| 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 | 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 | 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 | 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 | 11,435,192.00 | 8,995,981.00 |
Procurement Plan
| Title | Document Type | Document Date |
|---|---|---|
| Visakhapatnam-Chennai Industrial Corridor Development Program - Project 1: Procurement Plan | Procurement Plans | Aug 2020 |