The government of India and the Asian Development Bank (ADB) have inked a significant agreement for a $250 million policy-based loan. This financial boost is set to further propel the development of industrial corridors, enhancing the competitiveness of manufacturing, strengthening national supply chains, and creating substantial employment opportunities.

Following the successful deployment of the first $250 million loan approved in October 2021, this additional funding under Subprogramme 2 will bolster the National Industrial Corridor Development Programme (NICDP). The NICDP, launched in 2016 and updated in 2020, focuses on improving the planning and management of industrial economic clusters to attract private infrastructure and manufacturing investments, the ministry of finance said in a press release.

Juhi Mukherjee, joint secretary, department of economic affairs, ministry of finance, represented the government of India in signing the agreement, while Hoe Yun Jeong, deputy country director and officer-in-charge of ADB’s India Resident Mission, signed on behalf of ADB.

A key facet of the second subprogramme is the development of alternative financing solutions for industrial clusters, including green finance. This initiative aims to enhance industrial workplace safety, integrate environment and climate change practices, and contribute significantly to alleviating poverty in the corridor states. The programme is poised to create jobs in various sectors, including textiles.

The government of India and ADB also signed an agreement for a 37 billion Japanese Yen ($250 million) loan that will continue financing the construction of the 82-kilometre Delhi-Meerut Regional Rapid Transit System (RRTS) corridor. This project will provide fast, safe, and high-capacity commuter transit services, expanding economic and employment opportunities in the region by cutting travel time from 3-4 hours to about 1 hour.

Fibre2Fashion News Desk (DP)

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