Vizag-Chennai Industrial Corridor

Context: Asian Development Bank (ADB) had recently prepared a Conceptual Development Plan (CDP) for Vizag-Chennai Industrial Corridor (VCIC).


What does the Plan says? Under the Comprehensive Development Plan, 4 nodes have been identified for development purpose. These are: (i) Visakhapatnam, (ii) Machilipatnam, (iii) Donakonda and (iv) Chittoor.  Amongst these nodes, Visakhapatnam and Chittoor have been prioritized by the Government of Andhra Pradesh (GoAP). Initial master planning of these two nodes were also completed by ADB.  As per the proposal of GoAP, National Industrial Corridor Development and Implementation Trust (NICDIT) in its meeting held on 30th August, 2019 has accorded its approval for development of Vishakhapatnam and Chittoor as priority nodes in phase-1 of VCIC. LOAN ASSISTANCE: The loan has been agreed between State Government and Asian Development Bank (ADB).  ADB has approved USD 631 million (in loans and grants) for the corridor, comprising a Multi-Tranche Financing Facility (MFF) as follows:

  • Two-tranche MFF of USD 500 million to build key infrastructure;
  • Two-tranche Policy Based Loan (PBL) of USD 125 million to support policy reforms and institutional development in the State.
  • Grant of USD 5 million from the multi-donor Urban Climate Change Resilience Trust Fund (UCCRTF) to build climate change resilient infrastructure in Visakhapatnam.
  • Technical assistance of USD 1 million to help the Andhra Pradesh local government implement policy reforms.


It is a key part of the India’s first coastal corridor i.e., East Coast Economic Corridor (ECEC). VCIC is aligned with the Golden Quadrilateral (The Golden Quadrilateral (GQ) is a national highway network connecting most of the major industrial, agricultural and cultural centres of India. It forms a quadrilateral connecting the four major metro cities of India, viz., Delhi (north), Kolkata (east), Mumbai (west) and Chennai (south). At 5,846 kilometres (3,633 mi), it is the largest highway project in India and the fifth longest in the world.) and is poised to play a critical role in driving India’s Act East Policy and Make in India campaign.

Proposed Length: 800 km

Connectivity: It links India with the Association of Southeast Asian Nations (ASEAN) and East Asian economies that form the bedrock of global manufacturing economy.The corridor traverses nine districts of the state of Andhra Pradesh. 

VCIC is the first phase of the ECEC (being implemented in phased manner due to its vast scope), which will run from Kolkata to Kanyakumari, encompassing the four states of Andhra PradeshTamil NaduOdisha, and West Bengal.  GOI has selected the Asian Development Bank (ADB) as the lead partner for developing the ECEC. 

Follow us on:



Join us on Telegram:

Print Friendly, PDF & Email