India and ADB sign $250 Million loan for Industrial Corridor Development

Context: Recently, India and Asian Development Bank (ADB) signed a $250 million policy-based loan for the Industrial Corridor Development Programme (Sub-programme 2).

ADB Approves $250 Million for Industrial Corridor Development

• Earlier Experience: It builds on the $250 million Sub-programme 1 loan approved by ADB in October 2021 that helped strengthen policy frameworks for the National Industrial Corridor Development Programme (NICDP).
• Significance: This policy-based loan will make manufacturing more competitive, strengthen national supply chains and links with regional and global value chains, and create more and better jobs.

About National Industrial Corridor Development Programme (NICDP)

• Nodal Ministry: Ministry of Commerce & Industry
• Infrastructure Programme: It aims to develop futuristic industrial cities in India which can compete with the best manufacturing and investment destinations in the world. 

Apex Monitoring Authority of National Industrial Corridor Development and Implementation Trust

• Constitution: The Government of India constituted the Apex Authority in August 2007 and re-constituted it in December 2016.
• Composition: It comprises the Finance Minister as Chairperson, Minister-in-charge, Ministry of Commerce and Industry, Minister of Railways, Minister of Road Transport and highways, Minister of Ports, Shipping and Waterways, Vice-Chairman (NITI Aayog) and Chief Ministers of all NIC States as Members.

Significance of this Sub-programme 2

• Integration of the Industrial Corridors with Multiple Facilities: The loan for the Sub-programme 2 will help in the integration of industrial corridors with transport, logistics and urban facilities under the government’s Prime Minister Gati Shakti platform. 
  • Gati Shakti Platform is a digital platform that will bring 16 ministries and departments of the Government of India together to have a coordinated execution of infrastructure connectivity projects across the country.
• Promotion of Gender Equality: It will promote gender equality in manufacturing and corridor development.
• Enhancement of Skills: It will help in the conduct of training and upskilling of workers in industrial corridors.
• Development of Alternative Financing Solutions: It will help industrial corridors develop alternative financing solutions, such as green finance, for industrial cluster development. 
• Improvement in Safety Practices: It will improve industrial workplace safety, integrate environment and climate change practices in these areas. 
• Improvement of Investment Environment: To improve the ease of doing business, the programme will introduce a synchronized Central and State-level single window clearance system and digitize processes to streamline the logistics process.

To Read More: Asian Development Bank                                        

News Source: PIB