The Centre has agreed to engage Asian Development Bank (ADB) to carry out a feasibility study and the conceptual development plan (CDP) for the East-Coast Economic Corridor (ECEC) that links Kolkata in the east to Tuticorin in the south through Chennai in a phased manner.
The ECEC is a multimodal, regional maritime corridor that can play a vital role in unifying the large domestic market and integrating the Indian economy with the dynamic global value chains of Southeast Asia and East Asia.
In the first phase, the Vizag-Chennai Industrial Corridor (VCIC) segment of ECEC was taken up. The Andhra Pradesh (AP) government is implementing the project covering 11 districts in Andhra Pradesh and Tamil Nadu
In September 2016, ADB approved $631 million as loans and grants for the VCIC, which also required counterpart funding of $215 million from the AP government.
Aside from an ambitious infrastructure program, the ECEC involves developing skills, creating an attractive regulatory environment, bringing in new investments, nurturing existing businesses to grow and innovate, and create much-needed jobs.
ADB helped prepare the CDP and Regional Perspective Plan (RPP) for the VCIC that served as a basis for its development Program, approved by the ADB Board in September 2016.
The Programme comprises a multi-tranche financing facility (MFF), a grant, and a policy-based loan (PBL) for a total investment amount of $631 million. The MFF and grant will support priority infrastructure investments in the VCIC region and the PBL will support policy reforms and institutional development in Andhra Pradesh.