India : Visakhapatnam-Chennai Industrial Corridor Development Program (Tranche 2)

Sovereign Project | 48434-004

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 Details

  • Project Officer
    Hosur Viswanath, Ashwin
    Sectors Group
    Request for information
  • Country/Economy
    India
  • Sector
    • Water and other urban infrastructure and services
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
Source Amount
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.
Impact

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).

Contact

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

Timetable

Concept Clearance
-
Fact Finding
-
MRM
15 Feb 2023
Approval
24 Apr 2023
Last Review Mission
-
Last PDS Update
26 Mar 2024

Funding

Loan 4312-IND

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
24 Apr 2023 23 May 2023 21 Jul 2023 19 Sep 2026 - -
Financing Plan
  Total (Amount in US$ million)
Project Cost 214.80
ADB 141.12
Counterpart 73.68
Cofinancing 0.00
Loan Utilization
  Date ADB Others Net Percentage
Cumulative Contract Awards 06 Jun 2024 117.91 0.00 84%
Cumulative Disbursements 06 Jun 2024 0.00 0.00 0%

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.


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 - Tranche 2: Development of Internal Infrastructure in the Startup Area of Chittoor-South Industrial Cluster Updated Initial Environmental Examination Initial Environmental Examination Dec 2023
Visakhapatnam-Chennai Industrial Corridor Development Program - Tranche 2: Development of Road for External Connectivity to Nakkapalli Industrial Cluster Road Draft Initial Environmental Examination Initial Environmental Examination Dec 2022
Visakhapatnam-Chennai Industrial Corridor Development Program - Tranche 2: Development of Road for External Connectivity to Naidupeta Industrial Cluster Road Subproject Draft Initial Environmental Examination Initial Environmental Examination Dec 2022
Visakhapatnam-Chennai Industrial Corridor Development Program - Tranche 2: Development of Road for External Connectivity to Routhusuramala Cluster Draft Initial Environmental Examination Initial Environmental Examination Dec 2022
Visakhapatnam-Chennai Industrial Corridor Development Program - Tranche 2: Development of Internal Infrastructure in the Startup Area of Chittoor-South Industrial Cluster Draft Initial Environmental Examination Initial Environmental Examination Dec 2022
Visakhapatnam-Chennai Industrial Corridor Development Program - Tranche 2: Widening of Anakapalli to Atchuthapuram Road Draft Initial Environmental Examination Initial Environmental Examination Dec 2022
Visakhapatnam-Chennai Industrial Corridor Development Program - Tranche 2: Development of Internal Infrastructure in the Start-up Area of Rambilli Industrial Cluster Draft Initial Environmental Examination Initial Environmental Examination Dec 2022
Visakhapatnam-Chennai Industrial Corridor Development Program - Tranche 2: Development of Internal Infrastructure in the Startup Area of Nakkapalli Industrial Cluster Draft Initial Environmental Examination Initial Environmental Examination Dec 2022
Visakhapatnam-Chennai Industrial Corridor Development Program - Tranche 2: Updated Draft Environmental Assessment and Review Framework Environmental Assessment and Review Framework Nov 2022
Visakhapatnam-Chennai Industrial Corridor Development Program - Tranche 2: Widening of Anakapalli to Atchuthapuram Road Draft Resettlement Plan Resettlement Plans Nov 2022
Visakhapatnam-Chennai Industrial Corridor Development Program - Tranche 2: Development of Internal Infrastructure in the Start-up Area of Rambilli Industrial Cluster Draft Resettlement Plan Resettlement Plans Nov 2022
Visakhapatnam-Chennai Industrial Corridor Development Program - Tranche 2: Development of Internal Infrastructure in the Start-up Area of Chittoor-South Industrial Cluster Draft Resettlement and Indigenous People Plan Combined Resettlement Plan and Indigenous Peoples Plans Nov 2022
Visakhapatnam-Chennai Industrial Corridor Development Program - Tranche 2: Development of Road for External Connectivity to Naidupeta Industrial Cluster Road Subproject Draft Resettlement Plan Resettlement Plans Nov 2022
Visakhapatnam-Chennai Industrial Corridor Development Program - Tranche 2: Development of Road for External Connectivity to Nakkapalli Industrial Cluster Road Draft Resettlement Plan Resettlement Plans Nov 2022
Visakhapatnam-Chennai Industrial Corridor Development Program - Tranche 2: Resettlement Framework Resettlement Frameworks Nov 2022
Visakhapatnam-Chennai Industrial Corridor Development Program - Tranche 2: Development of Internal Infrastructure in the Start-up Area of Nakkapalli Industrial Cluster Draft Resettlement Plan Resettlement Plans Nov 2022
Visakhapatnam-Chennai Industrial Corridor Development Program - Tranche 2: Indigenous People Planning Framework Indigenous Peoples Planning Frameworks/Indigenous Peoples Development Frameworks Nov 2022
Visakhapatnam-Chennai Industrial Corridor Development Program - Tranche 2: Development of Road for External Connectivity to Routhusuramala Cluster Draft Resettlement Plan Resettlement Plans Nov 2022
Visakhapatnam-Chennai Industrial Corridor Development Program - Tranche 2: Internal Infrastructure Work in Andhra Pradesh Med Tech Zone Updated Land Acquisition and Resettlement Due Diligence Report Safeguards Due Diligence Reports May 2020
Visakhapatnam-Chennai Industrial Corridor Development Program - Tranche 2: Internal Infrastructure Work in Andhra Pradesh Med Tech Zone Draft Land Acquisition and Resettlement Due Diligence Report Safeguards Due Diligence Reports Oct 2019

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$) Contract Amount Financed by ADB (US$)
Development of Major Infrastructure and Utilities in Start-up Area of Nakkapalli Cluster, Visakhapatnam Districts, Andhra Pradesh Loan 4312 22 Feb 2024 BVSR-Garrison (JV) | H. No. 8-2-686/B/11/6/1, Plot No. 9, Road No. 12, Banjara Hills, Hyderabad 500034 Department of Industries & Commerce, Government of Andhra Pradesh 39,962,463.98 34,132,461.27
Development of Major Infrastructure and Utilities Services in Start-up Area of Chittoor Node South Cluster at Chittoor District, Andhra Pradesh, India Loan 4312 03 Feb 2024 Aurobindo Reality & Infrastructure Private Limited & KMV Projects Limited (JV) | #21-121/1, Survey Nos. 66 (Part) & 67 (Part), Miyapur, Hyderabad, Telangana 500049 Department of Industries & Commerce, Government of Andhra Pradesh 39,801,862.41 34,031,933.70
Widening & Strengthening of External Connectivity to Routhusuramala Industrial Cluster (Part of South Block of Proposed Yerpedu-Srikalahasthi Node) to Two Lane with Paved Shoulders (from km 0+000 to km 9+207) Loan 4312 19 Aug 2023 PLR Projects Pvt. Ltd. | Survey No. 12 (Part), Plot No. 2-91/12/Ai/AM/G-1, 5th Floor, Astra Towers, Kothaguda Post, Kondapur, Hitechcity, Hyderabad, Telangana, India 500084 Dept of Industries & Comm, Govt of Andhra Pradesh 8,105,681.32 7,454,490.84
Widening & Strengthening of External Connectivity to Naidupeta Industrial Cluster with NH 16 Road to Two Lane with Paved Shoulders (from km 0+000 to km 8+400) Loan 4312 19 Aug 2023 Bhavani (JV) | #16-6-114, Near Vijayamahal, Nellore-524001, SPSR, Nellore District, Andhra Pradesh Dept of Industries & Comm, Govt of Andhra Pradesh 14,520,922.40 13,354,347.24
: Widening & Strengthening of Anakapalle-Atchutapuram Road to Divided Four Lane (from km 1+670 to km 15+450) Loan 4312 19 Aug 2023 M/s BVSR Joint Venture (JV) | #8-2-686/B/11/6/1, Plot No. 9, Road No. 12, Banjara Hills, Hyderabad, Telangana, India 500034 Dept of Industries & Comm, Govt of Andhra Pradesh 29,216,555.22 26,869,369.09
Widening & Strengthening from NH 16 to Nakkapalli Cluster Connectivity Road with Two Lane with Paved Shoulders (from km 0+000 to km 4+427) Loan 4312 19 Aug 2023 M/s Sri Venkateswara Constructions | D.No. 26-23-1/2, Chaitanya Nagar, Gajuwaka, Visakhapatnam-530026, Andhra Pradesh Dept of Industries & Comm, Govt of Andhra Pradesh 3,114,984.11 2,864,733.96

Procurement Plan

Title Document Type Document Date
Visakhapatnam-Chennai Industrial Corridor Development Program (Tranche 2): Procurement Plan Procurement Plans Jan 2023