About:

• • The Asian Development Bank was founded in 1966 with the primary mission of fostering growth and cooperation among countries in the Asia-Pacific Region.  
  • It is headquartered in Manila, Philippines.  
  • At present, ADB comprises 68 members (including India)– of which 49 are from within Asia and the Pacific and 19 outside.  
  • The ADB was modeled closely on the World Bank, and has a similar weighted voting system where votes are distributed in proportion with members’ capital subscriptions.  
  • The two largest shareholders of the ADB are the US and Japan.  
  • ADB is an official United Nations Observer.

• ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. 

Why in the news?

• The Asian Development Bank (ADB) and the Government of India recently signed a $484 million loan to improve transport connectivity and facilitate industrial development in the Chennai–Kanyakumari Industrial Corridor (CKIC) in the state of Tamil Nadu.

News in detail:

• CKIC is part of India’s East Coast Economic Corridor (ECEC), which stretches from West Bengal to Tamil Nadu and connects India to the production networks of South, Southeast, and East Asia. 
• ADB is the lead partner of the Government of India in developing ECEC.
• The project is part of the priority infrastructure projects identified for corridor development under the ADB-supported CKIC comprehensive development plan.
• The project is key to providing seamless road connectivity across industrial clusters, transport gateways and consumption centers, and help reduce logistics and production costs for CKIC’s targeted industries to boost their competitiveness.
• The overall objective is to spur industrial transformation through provisioning of essential transport, energy and urban infrastructure for holistic development of industrial growth centres.
• The project will upgrade about 590 km of state highways in the CKIC influence areas that cover 23 of the 32 districts between Chennai and Kanyakumari in Tamil Nadu. 

Significance of the project

• Enhanced connectivity of industrial hubs with hinterland and ports will particularly help increase the participation of Indian manufacturing in global production networks and global value chains, thereby creating jobs along the corridor.
• In line with Strategy 2030, ADB’s long-term corporate strategy, the project emphasises sustainability, climate change resilience, and road safety elements. 

(Strategy 2030 sets the course for the Asian Development Bank (ADB) to respond effectively to the region’s changing needs. Under Strategy 2030, ADB will sustain its efforts to eradicate extreme poverty and expand its vision to achieve a prosperous, inclusive, resilient, and sustainable Asia and the Pacific.)

• The project will help improve the planning capacity of Tamil Nadu’s Highways and Minor Ports Department.

Reference:

1. https://www.pib.gov.in/PressReleasePage.aspx?PRID=1727501