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The Department of Economic Affairs has approved $500 million under project loan and $125 million under the policy loan component for the Vizag-Chennai Industrial Corridor. In addition, the Andhra Pradesh government will invest about $215 million under the project loan.
Together, the overall project cost works out to $840 million (about ₹5,600 crore). While a high-powered fact finding team from the ADB visited the state during November, once the loan negotiations are completed, the funding is expected by June 2016, according to the Finance Minister Yanamala Ramakrishnudu.
DPR preparations on Answering questions in the State Legislative Assembly today, he said the Japan International Cooperation Agency (JICA) has agreed in principle to support the Chennai-Bengaluru Industrial Corridor and the details of the funding pattern are being worked out by the Department of Industrial Policy & Promotion and JICA.
The Minister said the State government is in the process of implementing these two projects, which are at various stages of project funding approvals and detailed project report preparation.
Amaravati capital formation While the Vizag-Chennai corridor touches nine districts of the State, it will have four major nodes at Visakhapatnam, Kakinada, Gannavaram-Kankipadu (near the new capital city of Amaravati) and Yerpadu-Srikalhastri.
The State is keen to link one of the nodes to the proposed new greenfield capital city of Amaravati.
Under this $840 million VCIC project, various components include four road projects worth ₹1,220 crore would be taken up along with three power related (₹1,243 crore), four infrastructure upgradation projects (₹906 crore).
Zones of influence For the Chennai-Bengaluru Industrial Corridor, a concept plan prepared by the consultancy firm PWC has been approved and covers some of the select areas of Anantapur, Chittoor and Nellore districts as zones of influence.
It has nodes at Hindupur in Anantapur district, Chittoor district and Krishnapatnam.
The total tentative cost of the project is estimated to be ₹18,548 crore.
The Krishnapatnam node, which has a port and power projects and is expected to be a major industrial, hub, covers 13,971 acres.
While the detailed project reports (DPRs) are being prepared by the State agencies, it is proposed to appoint consultants for their preparation.
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