In a major boost for development of the Chennai-Vizag Industrial Corridor, the Andhra Pradesh government is set to clinch a $500-million credit line from the Asian Development Bank.

According to government sources, the loan is likely to conclude before the year-end. This loan relates to Policy Finances segment, covering several aspects of infrastructure development on the corridor.

The State government has secured the Centre’s nod for this loan and has pitched for additional credit in the business policy segment where several projects will be funded.

The ADB, Department of Economic Affairs and the State are at an advanced stage of finalising the deal. The funding thus received could be utilised for infrastructure development, both to improve connectivity and power transmission capability, while also developing industrial clusters by APIIC. All detailed project reports for nearly 15 projects are ready.

Offset policy

Both Indian and global companies are awaiting changes to the Defence Offset Policy and what it has in store. This will trigger the next wave of investments into AP and other parts of the country.

Global leading manufacturers such as Airbus, Boeing, Rafael, Dassault etc., are awaiting the changes to be part of the ‘Make in India’ campaign.

As a part of the AP Industrial Policy and various sectoral policies already announced, including one on the aviation sector, the State is actively in dialogue with a number of manufacturers. “Once the offset policy is outlined, we expect many of these corporations, which would require shipment facilities, to make use of the infrastructure to be created on the new industrial corridor,,” a senior Government official told BusinessLine .

HPCL agreement

HPCL has inked a memorandum with the State for a brownfield refinery and petrochemical complex, which entails a total investment outlay of ₹18,000 crore.

The public hearing for the project was completed about two weeks ago. The environmental approval is likely within a month.

While the ADB has identified a long stretch for the industrial corridor, this segment is one where activity is on the rise, the official explained.

The State is also in negotiations to secure funding from JBIC and JICA for the Bengaluru--Chennai industrial corridor, where one of the nodes passes through Andhra Pradesh. The State plans to set up two special purpose vehicles for the corridors and their development.

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