Economic corridors: ADB approves Rs 3.5k cr loan for TN project

The Asian Development Bank (ADB) has approved a loan of Rs 3,533 crore for the Chennai-Kanyakumari Industrial Corridor (CKIC) in Tamil Nadu. The funds from the loan approved ADB will be utilised for the development of the CKIC. The industrial corridor project is a part of India's East Coast Economic Corridor (ECEC) that will span between West Bengal and Tamil Nadu. The corridor will connect the country to the production networks of the southeast and east Asia. The project will upgrade about 590 km of state highways in the CKIC areas. Climate change adaptation measures will be incorporated in the highway upgrades, including improved drainage, raised road embankments in critical sections, and resizing of bridges and culverts, ADB informed the media. The project aims to increase the participation of the manufacturing industry in production networks and global value chains. CKIC is envisaged along the coast of Tamil Nadu to leverage the state’s 1,000 km long coastline and operational ports. The CKIC covers an influence area of 23 districts (13 on the coast and 10 in the hinterland) out of 32 districts of Tamil Nadu. The influence area covers about 70% of the state's area and population and contributes 74% to the state's GSDP. As many as three trunk arterial roads—NH 7, NH-45 and SH-49 (East Coast Road) run through the corridor connecting to the north and south in Tamil Nadu. Through transverse road linkages, these roads form a network that serves as the spine of the corridor. In terms of other key transport linkages, the corridor is also served by—Chennai-Kanyakumari main railway line, which runs through the corridor, three major ports of Chennai Kamarajar (Ennore) and VoC (Thoothukudi), together with a capacity of 167 mtpa, and the ports of Kattupalli and Karaikal with 51 mtpa capacity, and three international airports—Chennai, Tiruchirappalli, and Madurai and one domestic airport (Thoothukudi). In 2017, The Asian Development Bank (ADB) and the Government of India signed $375 million in loans and grants to develop the 800-km Visakhapatnam-Chennai Industrial Corridor, the first phase of the planned 2,500-km-long ECEC. Image Source Also read: India and ADB sign $375 million in loans and grants for Phase-I of East Coast Economic Corridor