Center gives nod for AP’s Mega Industrial Clusters!

Central government had cleared Andhra Pradesh government’s ambitious plan to develop industrial clusters along the ‘Visakhapatnam-Chennai Industrial Corridor’ (VCIC) with the help of the Asian Development Bank (ADB). These clusters will come up with a overall investment of US $1000 availing of investment loan based on Multi-Tranche Financing Facility (MFF) to a tune of US $900 million from the ADB for the project.

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In the overall investment of US $ 1,000 million, US $ 200 million is for the policy component and US $ 800 million is for the project investment component. AP government will be investing US $ 100 million as its share in this project.

Now it all depends on the Central government. If the promised Special status is given to the state, then a large percentage of the ADB’s MFF loan of US $ 900 million gets converted into grant which will not have any interest.