The Asian Development Bank (ADB) and the Indian government have recently signed a loan agreement worth $141.12 million to support the development of high-quality internal infrastructure in Andhra Pradesh (AP). The funding will be utilized for the construction of roads, water supply systems, and an electricity distribution network in three industrial clusters within the state. This loan is part of a larger multi-tranche financing facility (MFF) approved by ADB in 2016 to enhance infrastructure in the Visakhapatnam and Srikalahasthi-Chittoor nodes of Andhra Pradesh.
Enhancing Industrialization and Economic Growth
The ADB financing aims to promote industrialization in Andhra Pradesh by increasing the share of manufacturing in the state’s gross domestic product (GDP). By developing infrastructure in the targeted industrial clusters, the project aims to enhance competitiveness and create employment opportunities in the region. The funding will contribute to the state’s efforts in attracting investments and improving marketing strategies for investment promotion.
Improving Infrastructure and Resilience
Under this project, the state will receive assistance in the form of updated marketing action plans for investment promotion. Furthermore, the project will focus on enhancing the skills of the local population, with a particular emphasis on socially and economically vulnerable sections of society. The development of a disaster risk management plan will also be a key component to strengthen the resilience of industrial clusters against extreme weather conditions.
Green Corridor Model and Sustainable Development
The project will support the establishment of operational guidelines for a green corridor model, aimed at ensuring the long-term sustainability of industrial clusters. Additionally, the program will focus on improving the operation and maintenance of startup industrial clusters. A toolkit will be developed, providing gender-responsive and socially inclusive guidance for integrating industrial and urban planning, including the development of housing in areas adjacent to industrial clusters.