Lok Sabha Question No. 1045 (UNSTARRED), answered on 2018-12-17
Subject: Visakhapatnam-Chennai Industrial Corridor
Ministry: COMMERCE AND INDUSTRY
Asked by: KINJARAPU RAM MOHAN NAIDU, KONAKALLA NARAYANA RAO

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY

## DEPARTMENT OF INDUSTRIAL POLICY & PROMOTION

## LOK SABHA

UNSTARRED QUESTION NO. 1045. TO BE ANSWERED ON MONDAY, THE 17 TH  DECEMBER, 2018.

## VISAKHAPATNAM-CHENNAI INDUSTRIAL CORRIDOR

## 1045.  SHRI RAM MOHAN NAIDU KINJARAPU: SHRI KONAKALLA NARAYANA RAO:

Will the Minister of COMMERCE AND INDUSTRY be pleased to state:

## वाणिज्य एवं उद्योग मंत्री

- (a) whether the Government had allotted funds/grants to Visakhapatnam-Chennai Industrial  Corridor  and  if  so,  the  details  thereof  and  if  not,  the  reasons therefor;
- (b) if allotted less amount of funds the reasons therefor;
- (c) the  reasons  for  allotting  high  amount  of  funds  to  Delhi-Mumbai  Industrial Corridor as compared to other industrial Corridors;
- (d) whether  it  is  a  fact  that  the  Asian  Development  Bank  has  consented  for providing  loan  to  Visakhapatnam-Chennai  Industrial  Corridor  and  if  so,  the details thereof; and
- (e) the amount of loan agreed to release and the time by which the said fund is likely  to  be  released  for  taking  up  the  execution  work  of  the  Industrial Corridor?

## ANSWER

## वाणिज् य एवं उद्योग मंत्रालय में राज् यमंत्री (श्री सी.आर. चौधरी) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY (SHRI C.R. CHAUDHARY)

- (a) to (c): Government of India releases funds after approval of National Industrial  Corridor  Development  &  Implementation  Trust  (NICDIT)  for projects  for  development  of  industrial  corridors  on  completion  of detailed  master  planning  and  detailed  preliminary  engineering.  The cost  estimates  for  various  infrastructure  components  along  with  the equity/debt contribution from Government of India can only be ascertained on the completion of detailed master planning and preliminary engineering which have not been completed yet in respect of Visakhapatnam-Chennai Industrial Corridor (VCIC).

ADB has approved a sector development programme loan of USD 625 million for VCIC, comprising a Multi-tranche Financing Facility (MFF), in

- (d) & (e): September 2016 as follows:
- (i)   USD  125  million  (Loan  No.  3424-IND)  two-tranche  Policy  Based Loan (PBL) to support policy reforms and institutional development in the State;
- (ii)  USD 500 million two-tranche MFF {comprising Project-1 loan ( USD 245  million  -  3430-IND)and  Project-2  loan  (USD  255  million)}  to build key infrastructure.

Details of allocation and disbursement of PBL loan and Project-1 loan are as under:

| Loan No.             | Allocation (USD)   | Disbursed (USD)   | Remaining (USD)   | Amount   |
|----------------------|--------------------|-------------------|-------------------|----------|
| 3424-IND (PBL)       | 125,000,000        | 62,500,000        | 62,500,000        |          |
| 3430-IND (Project-1) | 245,000,000        | 35,267,826        | 209,732,174       |          |

The closing date  of Loan 3424-IND is 31 December 2019 while that of Loan 3430-IND is June 2023, by which time the remaining amount is likely to be released.

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