ADB Loan for Chennai - Kanyakumari Industrial Corridor

#GS3 Economy 


News info:

  • The Asian Development Bank (ADB) and therefore the Government of India signed a USD 484 million loan for the Tamil Nadu Industrial Connectivity Project.
  • The loan is to enhance transport connectivity and facilitate industrial development within the Chennai - Kanyakumari Industrial Corridor (CKIC) within the state of Tamil Nadu.

Highlights:

  • The loan is in line with Strategy 2030, ADB’s long-term corporate strategy, the project emphasizes sustainability, global climate change resilience, and road safety elements.
  • Under Strategy 2030, ADB will expand its vision to realize a prosperous, inclusive, resilient, and sustainable Asia and therefore the Pacific, while sustaining its efforts to eradicate extreme poverty.
  • CKIC is a component of India’s East Coast Economic Corridor (ECEC).

Industrial Corridors Scheme:

  1. An industrial corridor is an economic ecosystem built around a transportation corridor connecting two major economic centers, where the transportation corridor is the nerve center of the economic activity across the corridor.
  2. In addition to the transportation corridor, a well-designed industrial corridor contains clusters of commercial production serving regional and global demand, and concrete centers proliferating equitable development.
  3. In 2019, the govt approved the event of the five industrial corridor projects, being implemented through National Industrial Corridor Development and Implementation Trust (NICDIT).
  4. NICDIT is an apex body under the executive control of the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry.

Five Industrial Corridor Projects:

  • Delhi Mumbai Industrial Corridor (DMIC).
  • Amritsar Kolkata Industrial Corridor (AKIC).
  • Chennai Bangalore Industrial Corridor (CBIC).
  • East Coast Economic Corridor (ECEC) with Vizag Chennai Industrial Corridor (VCIC).
  • Bangalore Mumbai Industrial Corridor (BMIC).

East Coast Economic Corridor:

  • It stretches from West Bengal to Tamil Nadu and connects India to the assembly networks of South, Southeast, and East Asia.
  • ADB is that the lead partner of the govt of India in developing ECEC.
  • It very much constitutes West Bengal, Odisha, Andhra Pradesh, and Tamil Nadu. The segment from Vizag to Chennai of this Corridor has been taken as phase-1.
  • Vizag-Chennai Industrial Corridor (VCIC) is that the first coastal economic corridor within the country.
  • It is aligned with the Golden Quadrilateral. It also plays a critical role within the “Act East Policy” of India.
  • The Golden Quadrilateral is that the longest road project in India and therefore the fifth-longest highway in the world. It connects Delhi, Mumbai, Kolkata, and Chennai.

Significance of Commercial Corridors:

  • Avenues for Exports:
  1. The Industrial Corridors are likely to lower the value of logistics thereby increasing the efficiency of the economic production structure.
  2. Such an efficiency lowers the value of production which makes the Indian-made products more competitive in international markets.
  • Job Opportunities:
  1. It will attract investments for the event of Industries which is probably going to make more jobs within the market.
  • Environmental Significance:
  1. The establishment of commercial Units during a scattered manner along the economic corridor across the length of the state will prevent the concentration of industries in one particular location which exploited the environment beyond its carrying capacity and caused environmental degradation.

Socio-Economic Significance:

  1. The cascading effect of commercial corridors in socio-economic terms are many like the fixing of commercial townships, educational institutions, hospitals. 
  2. These will further raise the standards of human development.

Asian Development Bank

  1. Being a regional development bank it was established on 19th December 1966. It's headquartered in Manila, Philippines.
  2. Currently, it has 68 members, 49 from within Asia. India may be a member.
  3. Its five largest shareholders are Japan and therefore the US (each with 15.6% of total shares), the People’s Republic of China (6.4%), India (6.3%), and Australia (5.8%).
  4. It aims to market social and economic development in Asia and therefore the Pacific.

Source: PIB

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