Asian Development Bank Current Affairs - 2019

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ADB to give $451Mn for Chennai-Kanyakumari Industrial Corridor power links 

The Asian Development Bank will provide a $451 million (appx. Rs.3,200 crore) loan to strengthen power connectivity between southern and northern parts of Chennai-Kanyakumari Industrial Corridor (CKIC) in Tamil Nadu. As per ADB, the Manila-headquartered multilateral agency the total cost of the project is $653.5 million, of which the government will provide $202.5 million.

About Chennai-Kanyakumari Industrial Corridor (CKIC)

On January 2019 Tamil Nadu Government passed a bill to amend Tamil Nadu Industrial Township Area Development Authority Act, 1997 (TNITADA) to turn CKIC project worth Rs.64.48 billion into reality.

The first phase of CKIC project will have Madurai-Virudhnagar-Dindigul-Theni and Thoothukudi-Tirunelveli nodes. The focus of CKIC will be on manufacturing.

ADB has been assisting in developing CKIC, which covers Tamil Nadu’s 23 out of 32 districts, accounting for 64% of Tamil Nadu’s area and 70% of state population. The ADB project will allow more power, (which includes renewable energy) to be transferred from new generation facilities in south CKIC to north, where demand is high.

The project includes constructing 400- kilovolt kV network to pool power generated at renewable and thermal power plants in Thoothukudi district to Virudhunagar district in Tamil Nadu. An extra-high voltage 765- kV transmission link for transferring 9,000 MW of extra capacity will be esablished from Virudhunagar in southern CKIC northwards to major industrial center of Coimbatore and state capital Chennai. The estimated date of completion of project is by end of 2024.

CKIC will help in promoting Tamil Nadu’s economic development by delivering a more reliable and competitive power supply for industry and services within the state, which will in turn increase jobs and improve livelihoods.

India ADB sign 190 million USD loan

On 12 October, 2019, the GoI signed a 190 million USD loan with the Asian Development Bank (ADB) to upgrade road transport in the state of Rajasthan. The project includes upgrading of 754 km of state highways, major district roads to two lane. The project will benefit 26 million people in 14 districts of Rajasthan.

The project also includes construction of more than 200 bus stops and 2 km of raised side walk.

In 2017, the bank offered 220 million USD of loan to upgrade 1,000 km of road.

India and ADB

India is one of the founding members of the ADB. It is the fourth largest shareholder in the bank. In 1980s and 1990s the bank supported the government’s program of industrialization. India got its first loan from the bank in 1986 as Industrial credit to introduce new technologies and to modernize medium-sized industries.

About ADB

The bank was established in 1966. The headquarters of the bank is located in Philippines. The bank was modeled close to World Bank. Every year ADB releases an annual report that summarizes its budget, operations and other materials for review by the public.

ADB is a UN observer. Japan and US hold the largest shares of the bank as of 2016. China is the third largest shareholder followed by India and Australia.