On December 8, 2023, the Asian Development Bank (ADB) approved a USD 250 million policy-based loan to develop industrial corridors in India aligning with the National Industrial Corridor Development Program (NICDP).
- This funding supports NICDP subprogram 2 for development of multi-modal logistics in industrial corridors under the Prime Minister (PM)Â Gati Shakti– National Master Plan for Multi-modal Connectivity platform.
- This loan complements the ADB’s USD 250 million Subprogram 1 approved in October 2021, which strengthened NICDP policies and developed 11 industrial corridors.
About NICDP:
NICDP was launched in 2016 by the Government of India (GoI) and was updated in 2020 to enhance planning and management of industrial clusters to attract private investments in infrastructure and manufacturing.
- It emphasizes efficient transport, quality infrastructure, and business-friendly policies, and setting up distribution networks linking production centers, urban centers, and international gateways like ports and airports.
- NICDP’s implementing agency is Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry.
Other Features of NICDP subprogram 2:
i.It supports industrial corridors with alternative financing like green finance and promotes workplace safety and environmental practices.
ii.There will be initiation of a synchronized central and state-level single window clearance system for ease of investments, and digitizes processes for streamlined logistics.
iii.It will offers private investors access to land and sex-disaggregated labor force data to facilitate investment decisions.
ADB approved USD 200mn Loan to Help Improve Waste Management and Sanitation in India
On December 13, 2023, ADB approved USD 200 million loan to improve solid waste management and sanitation in Indian cities. It will support GoI’s Swachh Bharat Mission(Clean India Mission)–Urban (SBM-U) 2.0 targeting garbage free Indian cities by 2026.
How will this ADB’ support be utilized?
i.Through this funding there will be development of municipal solid waste management and sanitation facilities and practices in 100 cities across 8 states.
ii.There will be establishment of upgraded waste facilities (bio-methanation, composting, landfills, recovery, plastic processing).
iii.There will be construction of communal toilets, urinals, and acquiring of sweeping equipment for improved urban services.
ADB to Provide USD 3.15mn TA grant
ADB will also provide an additional USD 3.15 million Technical Assistance (TA) grant from its Urban Resilience Trust Fund, Republic of Korea e-Asia and Knowledge Partnership Fund, and the Sanitation Financing Partnership Trust Fund.
- This TA grant will support implementation of above program, capacity building of selected states on financial management.
- It will also monitor, evaluate and facilitate city-to-city partnerships.
Key Points:
i.India generates about 62 million tons of Municipal Solid Waste (MSW) annually.
ii.According to the State of India’s Environment 2023 report, MSW generation in India is estimated to be around 150,000 tonne per day (TPD).
- 22%-28% of generated waste remains untreated, contributing to environmental pollution through open burning, illegal dumping, and uncontrolled dumpsites.
iii.The SBM eradicated open defecation for 500 million people, reducing health risks and preventing pollution, with ongoing efforts for further enhancements.
ADB launches pioneering climate action catalyst fund to drive decarbonisation in Asia-Pacific
ADB announced plans to launch the Climate Action Catalyst Fund (CACF) on January 1, 2024. It is a first-of-its-kind carbon fund under the Paris Agreement.
- The CACF is a carbon fund supporting mitigation actions in Asia-Pacific, enables financing partners to engage in long-term transactions for post-2020 outcomes, and foster the development of international carbon markets in ADB’s Developing Member Countries (DMCs)
Key Points:
i.CACF funds upfront climate mitigation for carbon credit delivery, emphasizing environmental integrity and sustainable development.
ii.Under Article 6 of the Paris Agreement, the CACF facilitates direct collaboration between countries, enabling emissions reductions measures to transfer between nations.
iii.The Swedish Energy Agency signed an agreement with ADB to contribute 300 million Swedish krona(~USD 27 million) to the fund which aims to mobilize more than USD 100 million in commitments from national and subnational government entities, and the private sector in ADB members.
iv.It should be noted that ADB aims to provide USD 100 billion in climate financing from its own resources from 2019 to 2030, including USD 34 billion for adaptation.
Click Here for Official Information about Fund
Recent Related News:
i.ADB has approved a USD 175 million loan for ‘India : Enhancing Connectivity
and Resilience of the Madhya Pradesh Road Network Project’.
ii.ADB has approved USD 400 million policy-based loan to India to enhance the
infrastructure quality and provide assured public services and efficient governance systems. The loan will be under Sub-programme 2 of ADB’s Sustainable Urban Development and Service Delivery Programme.
About National Industrial Corridor Development Program (NICDP):
CEO & MD– Rajat Kumar Saini
Headquarters– New Delhi, Delhi
