Offered $1B, state decides to take only Rs 6,000 crore
The Asian Development Bank has expressed its willingness to pay up to $1 billion over a long term for the proposed Visakhapatnam-Chennai Industrial Corridor.
Hyderabad: The Asian Development Bank has expressed its willingness 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 in no mood to incur huge debts.
The state has decided to seek only Rs 6,200 crore for the first phase of core infrastructure development projects in the state limits falling under the VCIC. The AP government wants a majority of funding for VCIC in the form of grants from the Centre. It is writing to the Centre to spell out year-wise grants it would give for the project and also give approval to Rs 6,200 crore loan assistance from ADB for the first phase of development projects to be taken up in the VCIC corridor in the state limits.
“The more aid AP takes, the more matching funds it has to raise for the project. While there is no doubt that that the state will not opt for $1billion financial assistance, but if it does, it has to invest a whopping $100 million to execute the project.
The Central government has announced it would fund the VCIC project and AP would like to garner as many grants as possible to reduce the loan component from ADB,” the official said. It may be mentioned that AP government has proposed to build a number of industrial parks, townships, roads and other physical infrastructure to provide connectivity and facilities in the VCIC project areas.
In the first phase-, the construction of four-lane and six-lane roads itself to provide connectivity between ports, airports, railway stations, townships and bus stands itself in the VCIC in AP limits will cost the state Rs 3,000 crore.
( Source : dc correspondent )
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