ADB’s Support for Industrial
Corridor and Smart Cities
in Andhra Pradesh
Satoshi Kurimoto
Energy Specialist, South Asia Department,
Asian Development Bank (ADB)
contact: skurimoto＠adb.org
5 March 2015
Contents
• General Information on ADB
• Vizag-Chennai Industrial Corridor
(VCIC)
• Transforming Vizag into a Smart City
• Conclusion
ADB’s President Takehiko Nakao met with
Prime Minister Narendra Modi (5 February 2015)
• ADB is planning to maintain the high lending
level of $7-$9 billion during 2015-2017.
• ADB will continue to finance new and
improved roads and urban infrastructure, as
well as renewable energy, including the
development of solar parks and
transmission lines.
• In addition, ADB will support the
development of industrial and economic
corridors. ADB is working with the
government on the Vizag-Chennai
Industrial Corridor with a renewed focus on
the manufacturing sector.
• ADB will also assist development of 10-20
smart cities.
General Information on ADB
Asian Development Bank (ADB)
• Founded in 1966
• 67 Members
• Capital $153.1 billion (end 2014)
– Japan （15.7%), United States （15.6%), PRC
(6.5%), India（6.4%）, Australia (5.8%)
• Annual Loan/Investment Approval $13.1
billion (2014)
• Staff : 2,990 (December 2014)
Our Products
Two areas of operations
Financial Assistance
Sovereign operations
Nonsovereign operations
Four types of TA
Technical Assistance
Project preparation
Capacity development
Policy advisory
Research & development
Examples
Knowledge services
Seminars, workshops, publications
Vizag-Chennai Industrial Corridor
(VCIC)
Vizag-Chennai Industrial Corridor (VCIC):
A key part of the East Coast Economic Corridor (ECEC) and
best suited to execute India’s “Act East Policy”
ECEC
VCIC
Conceptualizing and planning for the corridor
Components
Indicative timeline
Phase 1 - Conceptual development plan for the VizagChennai Industrial Corridor
• Industries for future development including MSMEs
• Nodes for industrial development
• Set of priority projects
• Recommendations on streamlining the business and
regulatory processes at the State
Phase 2 - Preparation of comprehensive regional
perspective plan
• Transport strategy
• Energy strategy
• Urban strategy
• Funding requirement
Submitted to GoI and GoAP
- December 2014
December 2015
• Implementation of highest priority interventions
for improving policy and regulatory environment
in the state
Master plans for selected nodes
June 2016
Four Industrial Nodes in VCIC
1.Visakhapatnam
Tamil Nadu
Andhra Pradesh
2. East Godavari
1
NH 16 alignment
3.West Godavari
Vishakhapatnam
Node
2
3
4. Krishna
4
Kakinada
Node
5. Guntur
Four nodes have been identified
5
Gangavaram –
Kankipadu
Node
6
6. Prakasam
► Vishakhatpatnam Node
► Kakinada Node
► Gangavaram – Kankipadu Node
8. Kadapa
8
7.Nellore
7
► Yerpedu – Srikalahasti Node
ADB is requested to prepare master plan
Yerpedu –
Srikalahsti
Node
9
9.Chittoor
10
10.Tiruvallur
11 11.Chennai
for Two Nodes (Vizag, YerpeduSrikalahasti)
Industry:
Food Processing, Textiles and Chemicals will continue
being major contributor.
Sectors like Electronics and Pharmaceuticals will grow
faster.
BIS 2034-35
BIS 2014-15
Food
Processing,
22.0%
Others,
20.0%
Food
Processin
g, 23.1%
Others,
20.0%
Electroni
cs, 6.0%
Textiles,
13.8%
Auto,
0.3%
INR
1,100
bn
Chem &
Petroche
m, 20.8%
Metallur
gy, 13.9%
Pharma,
2.1%
Electronics,
11.7%
INR
7,823
bn
Textiles,
13.2%
Auto, 1%
Chem &
Petrochem,
19.9%
Metallurgy,
7.7%
Pharma,
5.3%
Infrastructure Strategy for the Corridor:
Enabling Strong Gateways, Spinal and Grid Connectivity
Nodes and Gateways
Each node has been identified in proximity to key
gateways, whose performance is critical for
competitiveness of the corridor
Road Network
Strengthening the arterial roads and rail networks of
the corridor is also critical for the competitiveness of
the corridor
Principles for industrial policy:
 Must expand industrial production, employment,
and productivity simultaneously
 This requires
– Encouraging:
• Both capital and labor intensive sectors
• A growth-oriented approach to MSMEs (expansion,
adopting new technologies, formalizing, and linking with
larger firms and modern supply chains)
– Sensitivity to the value chain
– Tackling binding constraints to firm growth
• Infrastructure
• Regulations, e.g., easing entry and exit norms
• Skills
Andhra Pradesh Industrial Corridor Development Program:
 Policy Loan ($100 million) to support policy,
institutional, and governance reforms to promote
accelerated industrial development and enhance
VCIC’s competitiveness in “Ease of Doing Business”
 Investment Project of $600 million (ADB-$400 million):
• internal infrastructure in industrial clusters
• Transport infrastructure such as connectivity of nodes to
ports, urban areas, other nodes
• Power infrastructure (transmission and distribution)
• Infrastructure and advisory support for smart cities
• Skill development and capacity enhancement
• Capacity building of institutions in corridor management and
industrial development
• Project management support
Transforming Vizag
into a Smart City
Smart Cities- Key Components
Economic
Character
Funding,
Investments, Ease
of Doing Business
and Sustainability
Transport
Multimodal Public
Transport and
Mass Transit
Utilities
Smart/Micro Grid,
Water, Energy,
Infrastructure
Safety
Public Safety,
Critical Infra
Security, Police,
Fire
Liveability
Green Space,
Renewables,
Health,
Education,
Assisted Living,
Citizen
Participation
ICT
Comms Network,
Platform, Device
City Gateway
Airport, Railways,
Highway
Government
e-governance,
Resource
Utilization,
Operations
Efficiency
WARNING
24 HOUR
SURVEILLANCE
Shared Infrastructure
Utility Tunnels, Shared Poles/Ducts/Conduits, Rights-of-Way, Utility Notification Centre (Call before you dig)
Why? Smart Visakhapatnam:
Realizing “Make in India” by “Acting East”
Key Demographics
• Population: 2 million, mid-size city,
manageable
• Area: 544 km2 ; Vehicles: 0.55 Million
• Port city: Manufacturing hub linked to
Southeast Asia and East Asia
• Institutions: Railways, Navy, Port,
Steel city, IT, Andhra University
• Urban basic services: One of the best
in India
• New State: Commercial capital of
Andhra Pradesh
• VCIC & PCPIR: Visakhapatnam Node
– High potential
Visakhapatnam: Gap Analysis* (1/2)
•Physical Infrastructure Gap
Water Supply
• 24x7 supply of water supply absent due to high level of
non-revenue water (benchmark: 100%)
Sanitation Coverage
• Sewerage connections in 60% households (benchmark:
100%)
• Need to construct the wastewater treatment plants with
energy efficient and mechanized treatment processes
• Need to implement septage management in GVMC
* as per 2014 Status of Basic Services, GOAP
Visakhapatnam: Gap Analysis (2/2)
Solid waste management
– 100% SWM: However, door-to-door collection and segregation at
source are 30-35%.
Drainage
– Only 35% of road networks have roadside drains. On average 20
flooding incidents reported in a year.
Electricity, Telephony and ICT
• 95% households have electricity connections
Interrupted supply during summers
Currently no focus on green buildings
• 90% telephone coverage
Transport
– Inadequate mass transport system (within 800m distance)
Broad Framework for Smart City
Infrastructure
– Industrial Infrastructure: To make manufacturing
competitive and realize “Make in India”
– Urban infrastructure: Globally livable and sustainable city
for attracting investment and talent
– Improving the quality of life of the residents
Technology
– ICT to drive productivity and quality services
– Green technology – reduce waste and energy efficiency
Institutions
– Empowered local city government
– Citizens, private sector, investors
Recommended Smart City Initiatives for Vizag (1/2)
Phase 1
Services related to Social
Infrastructure
• Citizen Service Delivery
System & e-Governance
• Geospatial System (GIS)
Services related to Urban
Infrastructure
• Energy (both at individual
and city level – solar and
wind energy) & Water
Management
• Emergency & Disaster
Management
• Participatory & Connected
Government
• Transport & Traffic
Management
• Healthcare & Education
• Public safety and
Surveillance
Recommended Smart City Initiatives for Vizag (2/2)
Phase 2
Services related to Social
Infrastructure
Services related to Urban
Infrastructure
• Social Inclusion
• Solid Waste Management
• Community Mapping
• Sewage Management
• Environment
Sustainability
• Smart Buildings
• City Wide Wi Fi
22
Conclusion
ADB will work for:
• Making AP State more business friendly
– Infrastructure development (connectivity, power, water,
transport, urban development, etc.)
– Enhancement of ease of doing business (policy and
institutional framework)
• Contribution to make Smart Cities in AP
Your Input would be highly appreciated.