India: Infrastructure Development of Industrial Estates in Tripura

Sovereign Project | 55207-001

Tripura's vision is that manufacturing sector employment will be increased from 1.79% (Census of India, 2011) to 4.5% in 2030. The state has established rubber, food and bamboo parks to support existing and potential investors. It is felt that industrial cluster development has the potential to promote manufacturing growth and accordingly, Tripura Industrial Development Corporation Limited (TIDCL) has planned development of 15 industrial estates with the objective of industrial promotion, entrepreneurship development, and overall employment generation. ADB's Northeast Economic Corridor (NEEC) study report also recommended interventions for improved industrial development in Tripura through integrated approach of planning and design, and identified needs for integration of industrial infrastructure development with logistic parks, transportation and trade facilitation at various locations in Tripura.

Project Details

  • Project Officer
    Chattopadhyay, Soumya
    South Asia Department
    Request for information
  • Approval Date
    21 March 2022
  • Country/Economy
    India
  • Sector
    • Industry and trade
Project Name Infrastructure Development of Industrial Estates in Tripura
Project Number 55207-001
Country / Economy India
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 6046-IND: Infrastructure Development of Industrial Estates in Tripura
Ordinary capital resources US$ 2.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Regional integration
Drivers of Change Governance and capacity development
Knowledge solutions
Sector / Subsector

Industry and trade / Industry and trade sector development - Small and medium enterprise development - Trade and services

Gender Equity and Mainstreaming
Description

Tripura's vision is that manufacturing sector employment will be increased from 1.79% (Census of India, 2011) to 4.5% in 2030. The state has established rubber, food and bamboo parks to support existing and potential investors. It is felt that industrial cluster development has the potential to promote manufacturing growth and accordingly, Tripura Industrial Development Corporation Limited (TIDCL) has planned development of 15 industrial estates with the objective of industrial promotion, entrepreneurship development, and overall employment generation. ADB's Northeast Economic Corridor (NEEC) study report also recommended interventions for improved industrial development in Tripura through integrated approach of planning and design, and identified needs for integration of industrial infrastructure development with logistic parks, transportation and trade facilitation at various locations in Tripura.

The Government of Tripura (GOT), through its Department of Industries & Commerce (DoI&C) as the nodal agency, has applied for financial assistance through the Department of Economic Affairs, Ministry of Finance, Government of India under the project readiness financing (PRF) facility from the Asian Development Bank (ADB) in the form of a _loan_ for improving readiness of Infrastructure Development in Industrial Estates in Tripura.

The PRF will ensure high readiness of the ensuing program/ project by delivering the following outputs, through mobilization of consulting services under the supervision of and coordination with the GOT, DoI&C, TIDCL, and ADB.

Output 1: Sector strategy and investment plans prepared. Output 1 will help (i) strengthen the industrial planning/ preparing industrial strategy and promotion requirements; (ii) prepare investment plans and action plans; and (iii) prioritize key subproject and infrastructure components.

Output 2: Feasibility study, detailed engineering designs, and due diligence of priority subprojects completed. Output 2 will focus on (i) feasibility studies and preparation of detailed engineering designs; (ii) social and environmental due diligence; (iii) economic and financial analyses; gender equality and social inclusion; (iv) climate and disaster resilience; and (v) procurement risk/ capacity assessment, strategic procurement planning, contract modalities, procurement plan, contract management plan(s); bid documents, tendering and bid processing.

Output 3: Institutional capacity development strengthened. This will include capacity building of DoI&C and TIDCL on financial, technical, safeguards, gender equality and social inclusion (GESI), procurement aspects, supporting in sector analysis, and developing the institutional strengthening and capacity development component. It will (i) review institutional capacities and current operation and maintenance practices; (ii) outline reform actions and scope to arrive at industrial development planning and processing framework/ mechanism under the ensuing loan, (iii) outline scope of institutional strengthening component of the ensuing project for sustainability of assets; and (iv) support planning, design, implementation, and management of PRF outputs, and ensuing project.

Project Rationale and Linkage to Country/Regional Strategy

Tripura is a landlocked state in northeast India, bordering Bangladesh and Indian states of Assam and Mizoram. Tripura is primarily an agrarian State, having favorable climatic conditions for cultivation of various fruit and horticultural crops, however the state still has vulnerability to disaster-triggered natural hazards. It is rich in natural resources such as natural gas, rubber, bamboo, tea, and medicinal plants. In addition, it acts as a gateway between Northeast India and Bangladesh, with an 856-km international border with Bangladesh, offering good potential for international trade. About 39% of gross state domestic product in 2019 2020 is accounted by the primary sector, while tertiary sector accounts for about 45%, and about 14% accounted for by the secondary sector of which only 23% is manufacturing and remaining 77% is utilities and construction. Tripura has been connected to rest of India through railway and national highway network. This has created an opportunity for the state to bring in industrial development to harness its natural resources. Despite being a resource rich state, Tripura has limited capacity of value addition and monetization to address the challenges of industrial backwardness. Better connectivity network and upcoming cross-border infrastructure projects are taking care of geographical isolation and now there is a need to improve the contribution of manufacturing sector, increase employment in industry sector, reduce dependence on agriculture and create opportunities to develop cross-border synergies and integration.

Tripura's vision is that manufacturing sector employment will be increased from 1.79% (Census of India, 2011) to 4.5% in 2030. The state has established rubber, food and bamboo parks to support existing and potential investors. It is felt that industrial cluster development has the potential to promote manufacturing growth and accordingly, Tripura Industrial Development Corporation Limited (TIDCL) has planned development of 15 industrial estates with the objective of industrial promotion, entrepreneurship development, and overall employment generation. ADB's Northeast Economic Corridor (NEEC) study report also recommended interventions for improved industrial development in Tripura through integrated approach of planning and design, and identified needs for integration of industrial infrastructure development with logistic parks, transportation and trade facilitation at various locations in Tripura.

Impact
Project Outcome
Description of Outcome
Progress Toward Outcome
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Tripura
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 One consulting firm and five (5) individual consultants are envisaged under the PRF. TIDCL is in process of completing the selection process of four (4) individual consultants and is in the process of selecting consulting firm for the PDMC following the ADB Procurement Policy, 2017 and Procurement Regulations, 2017 (as amended from time to time) and its associated staff instructions. The PDMC consulting firm will be procured on quality- and cost-based selection method with quality-cost ratio of 80:20, to ensure high quality of technical outputs under PRF.
Procurement

With the approval of advance contracting by ADB, TIDCL with ADB support has carried out procurement of individual consultants and initiated the recruitment of consulting firm following ADB's procurement Policy and Regulations. The experts in consulting firm recruited under PRF will enhance TIDCL's procurement and financial management capacities with oversight from ADB staff.

The procurement risk is classified as category B as there is no pilot testing activity being financed under this PRF loan. However, as part of the procurement arrangement assessment exercise, the agency's preliminary procurement assessment was conducted in August 2021. Based on the assessment findings, it has been observed that TIDCL does not have any prior experience of working with ADB or any other multilateral development banks, but TIDCL is carrying out procurement for consultants and other services for projects funded by state/ central government. TIDCL has established procurement systems like procurement unit, procurement committees for evaluation and approval of proposals and follow manual for Procurement of

Consultancy & Other Services, which focuses on efficient and realistic planning of the entire procurement process to ensure timely completion of the procurement cycle.

Responsible ADB Officer Chattopadhyay, Soumya
Responsible ADB Department South Asia Department
Responsible ADB Division India Resident Mission
Executing Agencies
Department of Industries & Commerce, Government of Tripura
[email protected]
Khejurbagan, Agartala, Tripura, India
Timetable
Concept Clearance 10 Apr 2023
Fact Finding 31 Aug 2021 to 01 Sep 2021
MRM 16 Dec 2021
Approval 21 Mar 2022
Last Review Mission -
Last PDS Update 21 Mar 2022

Loan 6046-IND

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
21 Mar 2022 - - 30 Sep 2023 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 2.50 Cumulative Contract Awards
ADB 2.00 18 Apr 2022 0.00 0.00 0%
Counterpart 0.50 Cumulative Disbursements
Cofinancing 0.00 18 Apr 2022 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.

None currently available.


Evaluation Documents See also: Independent Evaluation

None currently available.


Related Publications

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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

Tender Title Type Status Posting Date Deadline
Skills & Capacity Development Expert Individual - Consulting Closed 24 Nov 2021 13 Dec 2021
Project Design and Management Consultant (PDMC) Firm - Consulting Closed 29 Jul 2021 03 Sep 2021
Infrastructure Expert Individual - Consulting Closed 29 Jun 2021 18 Jul 2021
Investment Planning and Promotion Expert Individual - Consulting Closed 29 Jun 2021 18 Jul 2021
Industrial Strategy and Planning Expert (Project Manager) Individual - Consulting Closed 29 Jun 2021 18 Jul 2021
Policy and Institutional Development Expert Individual - Consulting Closed 29 Jun 2021 18 Jul 2021

Contracts Awarded

No contracts awarded for this project were found