ADB approves loan of $484 million to improve connectivity in Chennai–Kanyakumari Industrial Corridor

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The Asian Development Bank (ADB) has approved a loan amount of $484 million to improve transport connectivity and road maintenance in the Chennai–Kanyakumari Industrial Corridor (CKIC) in Tamil Nadu.         </p>
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In a statement, ADB said that the CKIC, part of India’s East Coast Economic Corridor, will be crucial to boost connectivity. It stretches from West Bengal to Tamil Nadu and connects India to the production networks of Southeast and East Asia.</p>
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The Centre has already underlined the need to boost connectivity within the country as well as with neighbouring countries.</p>
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“The development of the CKIC is part of ADB’s commitment to the Government of India to stimulate growth in industrial corridors by linking industrial growth centers and ports hinterland along the coastline and integrating regional value chains,” said ADB Principal Transport Specialist for South Asia Kanzo Nakai. “The project aims to increase the manufacturing industry’s participation in production networks and global value chains, as well as create jobs along the corridor.”</p>
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Tamil Nadu has a strong state economy with several manufacturing industries, including automobiles, engineering, pharmaceuticals, garments, and aerospace, the ADB said. However, the south and central areas of the state, which are away from current industrial hubs around Chennai, need development and better connectivity for balanced and inclusive growth. This is the primary objective of the project linking into the CKIC, the multilateral agency said.</p>