The Asian Development Bank (ADB) is set to provide a policy-based loan of $250 million for the development of Industrial Corridors. The loan agreement, signed on December 15, 2023, between the ADB and the Government of India, aims to enhance the competitiveness of the manufacturing sector, fortify national supply chains, foster connections with regional and global value chains, and create a substantial number of high-quality jobs. Juhi Mukherjee, Joint Secretary of the Department of Economic Affairs, Ministry of Finance, Government of India and Hoe Yun Jeong, Deputy Country Director, and Officer-in-Charge of ADB’s India Resident Mission represented each of the parties at the signing ceremony for the loan agreements.
ADB is extending another $250 million loan to continue financing the construction of the Delhi-Meerut Regional Rapid Transit System (RRTS) corridor. The RRTS project, an 82-kilometer rail corridor, is a critical component of the National Capital Region (NCR) Regional Plan 2021, connecting Delhi to neighboring cities. The ADB had previously approved a $1,049 million Multi-tranche Financing Facility (MFF) for the RRTS project in 2020, supporting the construction of priority rail corridors. The loan for the Industrial Corridor Development Programme (Subprogramme 2) follows the $250 million Subprogramme 1 loan approved by the ADB in October 2021. The earlier loan played a crucial role in strengthening policy frameworks for the National Industrial Corridor Development Programme (NICDP) and supporting the development of 11 industrial corridors.
Juhi Mukherjee expressed gratitude for ADB’s continued support in effectively implementing the NICDP, a government initiative launched in 2016 and updated in 2020 to enhance the planning and management of industrial economic clusters. The loan for Subprogramme 2 will further integrate industrial corridors with transport, logistics, and urban facilities under the government’s Prime Minister Gati Shakti platform.
Mr Jeong highlighted that the second subprogramme would contribute to gender equality in manufacturing and corridor development, providing training and upskilling opportunities for workers in industrial corridors. The program will also focus on developing alternative financing solutions, such as green finance, for industrial cluster development. It aims to enhance industrial workplace safety, integrate environmental and climate change practices, and introduce a synchronized Central and State-level single window clearance system to streamline logistics processes.
Industrial Corridor Development Programme’s objective is to create jobs in various sectors, including agribusiness, automotive, electronics, food and beverages, heavy machinery, pharmaceuticals, and textiles. The program aligns with the government’s vision to improve the investment climate, promote ease of doing business, and contribute to poverty alleviation in corridor states.
