ADB to fund $1 bn for Vizag-Chennai industrial corridor project

ADB and AP govt entered into an agreement earlier this year for development of VCIC project

Andhra Pradesh cabinet on Wednesday approved a $1 billion funding for the proposed Visakhapatnam-Chennai Industrial Corridor (VCIC) project from the loan assistance from the Asian Development Bank (ADB).

Earlier this year ADB and the state government had entered into an agreement for the development of VCIC project . However the project funding proposed initially was $400 million. Today's cabinet decision indicates a substantial scaling up of the project.

"Out of the $ 1 billion funding AP government would contribute $100 million to the project," a state government official said.

The government has proposed to build a number of industrial parks, townships, roads and other physical infrastructure along the existing highway between the two port cities in a bid to develop industrial hubs along this route.