ADB extends $451 million loan for Chennai-Kanyakumari Industrial Corridor

The Asian Development Bank (ADB) has extended a $451 million loan to strengthen power connectivity between the southern and northern parts of the Chennai–Kanyakumari Industrial Corridor (CKIC).

CKIC is part of the East Coast Economic Corridor (ECEC) in Tamil Nadu. ADB is lead partner of the Indian government for developing ECEC.

The project will help Tamil Nadu meet increasing power demand from commercial enterprises by allowing transfer of power from new generation facilities, including renewable energy, in the southern CKIC to the industrial hubs in the state’s northern region, said Sameer Kumar Khare, Additional Secretary (Fund Bank and ADB), Department of Economic Affairs, after signing a loan agreement.

The project will provide an impetus to the industrial development of CKIC, which ADB has been assisting in right from the planning stage.The project is expected to enhance industrial competitiveness while creating well paid jobs to support the state’s rapid economic transformation, said Kenichi Yokoyama, country director of ADB’s India Resident Mission.

The state is aiming to develop the northern Chennai–Tiruchirappalli area of CKIC as a manufacturing hub while dedicating the southern Madurai–Thoothukudi portion for the development of renewable energy-based power generation because of the availability of wind and solar resources.

The project will help establish extra-high-voltage transmission link between Virudhunagar and Coimbatore to transfer the additional generation capacity of 9,000 megawatt (MW), including 6,000 MW from renewables, by 2025. This will help reliably evacuate power from these new power plants in the southern CKIC. The project will also build the operational capacity of TANTRANSCO, the state-owned company responsible for transmission, by supporting a financial restructuring plan, better facilities and work environment for women workers, and improved monitoring system for social and environmental impacts. To support this end, ADB has approved a complementary technical assistance grant of $650,000

ADB approves Rs 1,650 cr infra projects for 7 district towns in Tripura

The Asian Development Bank (ADB) has approved a project worth Rs 1,650 crore to develop infrastructure in seven district headquarter towns of Tripura, a senior official has said.

The ADB will provide Rs 1,650 crore, out of which 80 per cent will be grant-in-aid and the state will have to repay 20 per cent loan in due course of time, he said.

"Such an ADB-assisted ambitious infrastructure development project, first of its kind in Tripura, is expected to modernise all the district headquarter towns and boost tourism and trade prospects in the future to realise the vision of Chief Minister Biplab Kumar Deb of transforming Tripura into a model state," the official told reporters on Sunday.

Till now, there had been no provision of any funding for development of district headquarter towns in Tripura other than Agartala, he said.

The ADB has approved the project submitted by the Urban Development Department amounting to Rs 1,650 crore for infrastructure development such as piped water supply, underground drainage, underground sewage or scientific seepage management, roads with pavement, in the seven district headquarter towns, other than Agartala," the official said.

The project will be taken up in Khowai, Ambassa, Dharmnagar, Kailashahar, Udaipur, Bishramganj and Belonia.

Representatives from the Department of Economic Affairs (DEA), Ministry of Finance, Ministry of External Affairs, Ministry of Housing and Urban Affairs and the Ministry of Home Affairs had approved the project in its 89th screening committee meeting held in November 15, 2018.

Accordingly, the ADB sent a Consultation Mission to Agartala, on December 21, 2018 to seek the feasibility of Project Financing Readiness (PFR) and Technical Assistance (TA) for preparations of DPRs of this project, the official said, adding the project received the final approval on June 14.

The Urban Development Department of the Tripura government will start preparing DPRs with the assistance of ADB for speedy execution of the said project, he said.

"For the first time, the state government has taken a concrete decision for development of infrastructure in seven of the eight district headquarter towns, to meet the long- standing demand of the people," he said.