Amaravati: Asian Development Bank (ADB) came forward for around Rs.3400 Cr loan for development of industrial node in Amaravati. Consultations were going on between ADB representatives and CRDA officials. Proposal was to develop industrial node in Amaravati as part of Vizag Chennai industrial corridor.
Preliminary talks were held between both the parties when ADB representatives has visited CRDA office in Vijayawada. CRDA has allocated 2000 acres for non polluting industries in electronic city at Kuragallu and Nidamarru villages. CRDA expects that this area would be home for electronic industries. CRDA plans to use ADB loan for basic infrastructure in electronic city, infrastructure development for connecting to nearby airports, ports, national highways. CRDA plans to use this fund for construction of Inner ring road (IRR) around capital city Amaravati.
Central government has decided to develop Vizag, Tirupati-Erpadu industrial nodes as part of Vizag Chennai industrial corridor (VCIC). Andhra Pradesh Government wants to include Amaravati as third node in VCIC. Generally Asian Development Bank funds for industrial and economic development projects. Asian Development Bank has already agreed to fund VCIC of 80 million dollars. CRDA officials expect that ADB would extend their funding with an additional 50 million dollars for development of Industrial node in Amaravati. Certain amount from ADB loan would be utilized for creating basic infrastructure like Roads, Drainage and water supply. CRDA plans to implement Housing for employees working in electronic city, social infrastructure development, construction of Inner Ring Road (IRR), Skill development training for youth to enable them to get jobs in these industries, connectivity to Machilipatnam port from Amaravati industrial node with loan from ADB. Priorities of these projects are yet to be finalized.
Loan from Asian Development Bank will be long term, moratorium for Loan repayments with no repayment in first ten years, Loan tenure up to 25 to 30 years and interest rate between 3 to 5 percent. Talks with ADB are still in preliminary stage and loan from them would come under FRBM, so proposals are being made keeping the debt limit of the government.