The Asian Development Bank (ADB) and the Government of India signed a loan of USD 141.12 million on 23.05.2023 to support the development of high quality domestic infrastructure such as roads, water supply systems and electricity distribution network in three industrial districts in the state of Andhra Pradesh. This funding is the second tranche of the $500 million Multi-Tranche Financing Facility (MFF) for the program approved by ADB in 2016 to build infrastructure in three industrial districts in the Visakhapatnam and Srikalahasthi-Chittoor nodes in the state.
ADB funding through the adoption of a multi-sectoral approach will help the state promote industrialization to increase the share of manufacturing in the state’s gross domestic product, build competitiveness and create jobs in the project’s target areas. Specifically, this funding will help strengthen industrial infrastructure in the Visakhapatnam node with the development of domestic infrastructure in the 160-hectare (ha) Rambilli and 441-hectare Nakkapalli industrial districts start-up area, the expansion of 13, 8 kilometers (km) of the Atchuthapuram–Anakapalli road and the improvement of the 4.4 km access road to the Nakkapalli cluster. The internal infrastructure in the proposed clusters will include internal roads, storm water outlets, water supply systems and electricity distribution systems. At the Srikalahasthi-Chittoor node, the project will help develop the Chittoor-South Industrial District start-up area of 938 hectares and improve a 9.5 km access road to the Chittoor-South Industrial District and an 8 km access road .7 km to the industrial district of Naidupeta.
Among the results, the project will support the state in carrying out an updated marketing action plan for investment promotion and upskill people, including socially and economically vulnerable sections. To strengthen industrial districts’ resilience to extreme weather conditions, the project will help establish operational guidelines of the green corridor model and develop a disaster risk management plan. For long-term sustainability, the program will formulate a plan to improve the operation and maintenance of start-up industrial clusters and launch a toolkit with gender-sensitive and socially inclusive guidelines to integrate industrial and urban planning, including industrial housing in areas adjacent to industrial districts.