AP govt refused $1 Billion Loan

Asian Development Bank offered to pay up to $1 billion over a long term for the proposed Visakhapatnam-Chennai Industrial Corridor but the cash-strapped Andhra Pradesh government is not interested to incur huge debts. The state instead only asked for 6,200 crore for the first phase of core infrastructure development projects in the state limits falling under the VCIC.

Incurring such huge debts will be danger for the state economy and the state government wants a majority of funding for VCIC in the form of grants from the Center as the industrial corridor is a promise to the state after the bifurcation. The state government recently wrote to the Center to announce its year wise allocations to the project and as well as approval to Rs 6,200 crore loan assistance from ADB.

AP government is planning to build a number of industrial parks, townships, roads and other physical infrastructure to provide connectivity and facilities in the VCIC project areas. The construction of four-lane and six-lane roads itself to provide connectivity between ports, airports, railway stations, townships and bus stands in the first phase alone will cost the state 3000 Crore.