Visakhapatnam will become the top contributor in growth once Visakhapatnam-Chennai Industrial Corridor (VCIC) takes a final shape.

Asian Development Bank, which has partnered with Andhra Pradesh Government for implementing the ambitious project, believes in node-based development.

Four nodes viz. Visakhapatnam, Kakinada, Gannavaram-Kankipadu and Yerpedu-Srikalahasti economic nodes are envisaged of which Visakhapatnam is projected to become the top contributor with 38 per cent.

“The corridor will change the investment landscape in Sunrise Andhra Pradesh but the investors expect that it should be implemented with a fixed time-frame on a fast-track mode,” AP Chamber of Commerce vice-president G. Sambasiva Rao told The Hindu .

The project is modelled on the lines of Delhi-Mumbai Industrial Corridor. ADB has already pledged to sanction a loan of US$625 million. AP has to mobilise $215 million from the Centre and other sources.

Industrial clusters

The Visakhapatnam node for which land has been identified by the district administration and the AP Industrial Infrastructure Corporation will pave the way for establishment of several industrial clusters. The petroleum corridor will also become part of the industrial corridor.

Investments

Sources said the Visakhapatnam node will attract investments in manufacturing, pharmaceutical, metallurgy, non-metallic, petrochemical and food processing industries. Faster evacuation of cargo will be one of the focus areas for which the besides widening the National Highway more arterial roads and dedicated freight corridors will be developed.

ADB Country Director Teresa Kho, during the CII Partnership Summit held here early this year, had said the industrial corridor would increase the GDP six times from Rs.2,000 billion in 2015 to Rs.11,600 billion in the next three decades. The corridor has also the potential to generate employment for 11 million.

Public hearing put on hold

At present, there are indications that instead of the controversial Petroleum Chemical Petrochemicals Investment Region between Visakhapatnam and Kakinada, the State government will develop a petroleum corridor after redesigning the project.

Following public outcry over possible pollution threat and land acquisition fears, the government put on hold indefinitely public hearing on PCPIR.

Cargo availability

The need to implement VCIC at the earliest figured at the Maritime Summit held sometime ago in New Delhi to increase cargo availability to the ports located between Visakhapatnam to Chennai.

Four economic nodes viz. Visakhapatnam, Kakinada, Gannavaram-Kankipadu and Yerpedu-Srikalahasti are envisaged

as part of Visakhapatnam-Chennai

Industrial Corridor