The Asian Development Bank (ADB) and the Government of India signed here $375 million in loans and grants to develop 800 km Visakhapatnam-Chennai Industrial Corridor, which is the First Phase of a planned 2,500 km long East Coast Economic Corridor (ECEC). The Corridor is expected to spur development on India's eastern coast in line with the Government of India's Make in India policy to stimulate manufacturing, and Act East policy to integrate the Indian economy with Asia's dynamic global production networks.

The signing event was held on 23.02.2017 followed the ADB approval of $631 million in loans and grants in September 2016 to develop the Visakhapatnam-Chennai Industrial Corridor. ADB's approved loans comprise a $500 million multi-tranche facility to build key infrastructure in the four main centers along the corridor - Visakhapatnam, Kakinada, Amaravati, and Yerpedu-Srikalahasti in the State of Andhra Pradesh. The First Tranche of $245 million was signed that will finance sub-projects to develop high-quality internal infrastructure in 2 of the 4 nodes of the corridor-Visakhapatnam and Yerpedu-Srikalahasti.

Another component of the approved ADB funds signed on 23.02.2017 was a $125 mn policy-based loan that will be used for capacity development of institutions engaged in corridor management, provide support to enhance ease of doing business and for supporting industrial and sector policies to stimulate industrial development.

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