Industrial Corridor Development Program (Subprogram 2) (ADB-54465-002)

Regions
  • South Asia
Geographic location where the impacts of the investment may be experienced.
Countries
  • India
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • Asian Development Bank (ADB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Dec 8, 2023
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Government of India
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Industry and Trade
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 250.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Loan Amount (USD)
$ 250.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Bank Documents
Primary Source

Original disclosure @ ADB website

Updated in EWS Feb 1, 2024

Disclosed by Bank Dec 8, 2023

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to to ADB documents,The Industrial Corridor Development Program (ICDP) supports the National Industrial Corridor Development Program of India (NICDP), a federal program of the government of India (GOI), which aims to develop world-class industrial nodes/parks well connected with multi-modal transport facilities and supported by a strong institutional and regulatory system.

The program will enhance the competitiveness of India's manufacturing sector by supporting implementation of the Government of India's National Industrial Corridor Development Program (NICDP). NICDP aims to enhance manufacturing sector's competitiveness through improved investment climate, well-functioning industrial nodes and industrial parks, and institutional reforms to attract large private sector investments. The proposed program supports policy reforms undertaken by the government to accelerate planning and implementation of NICDP across the industrial corridor states and enhances institutional setup for corridor development at national and state levels.

Subprogram 1 played a critical role in strengthening the institutional and regulatory framework developed by the federal government under the NICDP, and formulating policy and planning guidelines for states participating in the NIDCP. Subprogram 2 is intended to (i) ensure that the policies developed under subprogram 1 are implemented through development of master plans in five new nodes and in all future nodes in corridor areas,3 and (ii) facilitate private sector engagement in corridors by improving efficiency of business processes and thereby attracting more investment in industrial nodes.

The Ministry of Commerce and Industry, through the Department of Promotion of Industry and Internal Trade, will continue to be the executing agency, and the NICDIT and the NICDCL will be the implementing agencies. The implementation period for subprogram 1 was from April 2020 to January 2022, while for subprogram 2, it is from February 2022 to October 2023.

 

People Affected By This Project
People Affected By This Project refers to the communities of people likely to be affected positively or negatively by a project.

Subprogram 2 is classified category B for the environment and C for involuntary resettlement and indigenous peoples in accordance with ADB’s Safeguard Policy Statement (2009). Potential impacts associated with the prior actions supported by subprogram 2 have been assessed. They are not expected to directly cause adverse environmental impacts because there is no investment component. However, some prior actions may have indirect adverse environmental impacts related to downstream investment in industrial nodes. These impacts are not anticipated to be significant at a regional or sector level. No prior action will directly entail any involuntary resettlement or adversely affect indigenous peoples. 

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

The government has requested a regular loan of $250 million from ADB’s ordinary capital resources to help finance subprogram 2. The loan will have a 15-year term, including a grace period of 3 years; an interest rate determined in accordance with ADB’s Flexible Loan Product; a commitment charge of 0.15% per year; and such other terms and conditions set forth in the draft loan and program agreements. Based on the straight-line method, the average maturity is 9.25 years, and there is no maturity premium payable to ADB.


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.
Responsible ADB Officer Khatiwada, Sameer
Responsible ADB Department Sectors Group
Responsible ADB Division Public Sector Management and Governance Sector Office (SG-PSMG)
Executing Agencies
Ministry of Commerce and Industry

ACCESS TO INFORMATION

You can submit an information request for project information at: https://www.adb.org/forms/request-information-form

ADB has a two-stage appeals process for requesters who believe that ADB has denied their request for information in violation of its Access to Information Policy. You can learn more about filing an appeal at: https://www.adb.org/site/disclosure/appeals

ACCOUNTABILITY MECHANISM OF ADB

The Accountability Mechanism is an independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an Asian Development Bank-financed project. If you submit a complaint to the Accountability Mechanism, they may investigate to assess whether the Asian Development Bank is following its own policies and procedures for preventing harm to people or the environment. You can learn more about the Accountability Mechanism and how to file a complaint at: http://www.adb.org/site/accountability-mechanism/main.

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