The delay in launching work on development of Visakhapatnam-Chennai Industrial Corridor (VCIC) despite the in-principle sanction of $625 million by Asian Development Bank (ADB) is dampening the spirit of investors who feel a big push to the project would change the industrial landscape of the State.
The ADB, which prepared the concept paper, has agreed to give $500 million towards multi-tranch financing facility and policy-based loan worth $125 million long ago. Last year, the State government decided to take up the work on the Visakhapatnam and Chittoor nodes on a priority.
“The ambitious project aimed at boosting the manufacturing sector is yet to take off. Adequate provision has to be made for payment towards land acquisition,” Andhra Pradesh Chambers of Commerce and Industry Federation (APCCIF) president G. Sambasiva Rao told The Hindu. He also wanted a roadmap be finalised with deadlines for achieving various milestones.
The Andhra Pradesh Industrial Infrastructure Corporation (APIIC) has already identified both government and private land for the proposed industrial clusters. The government has mooted development of nodes in Visakhapatnam, Machilipatnam, Donakonda and on the Yerpedu-Srikalahasti stretch.
Equity contribution
Recently, Union Minister Piyush Goyal has said in Lok Sabha that the Centre, in the interim budget, had allotted ₹850 crore towards the initial equity contribution for the project and but no time frame could be fixed for the project “at this stage.”
However, the State government has earmarked ₹200 crore for the project in the budget tabled recently.
In Visakhapatnam district, around 4,500 acres was identified near Rambilli, of which the authorities wanted to acquire 2,300 acres on payment of ₹18 lakh per acre. The VCIC has been identified for development in the first phase of Kolkata-Kanyakumari East Coast Economic Corridor.
Project details
Petroleum corridors, special economic zones (SEZ) and exclusive industrial parks for electronics and industrial and defence spare parts have been mooted as part of the VCIC project. The ADB has already conducted a detailed study on projected growth of the economy including the requirement for residential areas, solid waste management, power grids and transmission lines, drinking and industrial water supply, transport and other important issues.
Now, with the NDA government at the Centre and YSR Congress Party coming to power in Andhra Pradesh, investors hope that a fresh impetus will be given to the project.
“We expect that dedicated officers will be deployed for the project and adequate funds earmarked for land acquisition for accelerating growth,” Vizag Development Forum vice-president O. Naresh Kumar said.