IN THE FIELD
CHENNAI: LORD OF THE RING ROADS
I n April 2023, India overtook China as the most populous country in the world with a population of more than 1.43 billion. This is nearly four times larger than the 361 million tallied in the 1951 census, the first count after independence. The rapid growth puts huge demands on the country’s infrastructure. A 2022 World Bank report says: “India will need to invest US$840 billion over the next 15 years – or an average of US$55 billion per annum – if it is to e ff ectively meet the needs of its fast-growing urban population.” One of the most dynamic metropolitan areas in India is Chennai, located in the southeast and capital of the state of Tamil Nadu. Formerly known as Madras, the city today has a population of 12.4 million and is one of the largest urban economies in India with a broad industrial base and a strong IT and business services sector. Three ports are serving not only Chennai but India as a whole, among them the country’s second- largest container hub. The rapid growth of Chennai is mirrored in the development of its road network. The city’s first ring road was 25.2 km long. Now a fourth circular, the Chennai Peripheral Ring Road, is under construction with a planned total length of 133.4 km. The OPEC Fund is joining the Asian Infrastructure Investment Bank in supporting the development of sections II and III with a US$100 million loan. The joint project will include the construction of a 56.2 km six-lane dual carriageway with a two-lane service road on each side. Completion of the sections is scheduled for 2026. Overall, the
Peripheral Ring Road is being delivered in five sections, of which section I has been completed, while construction work on sections II and III has started. The new road will bring multiple benefits, says Driss Belamine, OPEC Fund Country Manager: “Beyond its economic impact, it will ease congestion, reduce CO 2 emissions and improve road
congestion will also benefit the environment. CO 2 emissions for sections II and III are expected to drop by 74 percent and 53 percent, respectively. Equally, the new connection will dramatically increase road safety with incidents forecast to fall by half from 103 in 2022 to 52 in 2027. In addition to the project’s significant development impact, the engagement is also an
opportunity for the OPEC Fund to “reconnect with India”, as Mr. Belamine puts it. “This is a special time for India with robust economic growth, strong infrastructure investment and buoyant private consumption.” The G20 presidency this year is a recognition of the country’s growing international prominence. Yet India remains a country of huge disparities and enormous needs. The international community
The Chennai Peripheral Ring Road under construction
PHOTO: wuserPlaneMad
safety. All these are issues of major concern and here the project will have a significant impact.” Road tra ffi c remains the predominant means of transport in India as 65 percent of all goods are shipped by road. The improved connectivity between the industries in the region and ports will facilitate more e ffi cient movement of goods. Furthermore, it will decongest the city due to tra ffi c diversion and reduced travel time. Improved connectivity to the ports and national highways will stimulate industrial growth resulting in new jobs. These better and more e ffi cient connections will support businesses and allow them to fully realize their potential. Shorter travel times with less
is highly active, with foreign direct investment rising to US$49.3 billion in 2022, the third-largest amount in the world, according to the UNCTAD World Investment Report. At the same time it is one of the largest recipients of multilateral development financing: The Asian Development Bank alone had financed 855 projects for US$59.7 billion in the country by April 2023. However, given the huge challenges, Mr. Belamine is confident that the OPEC Fund will be able to carve out its niche in India: “In addition to the growing challenge of urban mobility, the green transition, climate change and food security are examples where we can make a real di ff erence, leveraging on our strategic partnerships,” he says.
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