Capital grant approved for GAIL to develop gas infrastructure -Governance Now

Capital grant approved for GAIL to develop gas infrastructure

It will ensure the availability of eco-friendly fuel to the industrial, commercial, domestic and transport sectors in Uttar Pradesh, Bihar, Jharkhand, Odisha and West Bengal.

GN Bureau | September 21, 2016

#JHBDPL project #capital grant #cabinet #GAIL #national gas grid

The cabinet on Wednesday approved capital grant to GAIL to develop gas infrastructure in eastern India.

The Cabinet Committee on Economic Affairs, chaired by prime minister Narendra Modi, has approved viability gap funding / partial capital grant at 40 percent (Rs. 5,176 crore) of the estimated capital cost of Rs. 12,940 crore to GAIL for development of 2,539 km long Jagdishpur-Haidia and Bokaro-Dhamra Gas Pipeline (JHBDPL) project.

The government took this decision to provide capital support for developing this gas pipeline. JHBDPL project will connect eastern part of the country with National Gas Grid.

It will ensure the availability of clean and eco-friendly fuel i.e. natural gas to the industrial, commercial, domestic and transport sectors in Uttar Pradesh, Bihar, Jharkhand, Odisha and West Bengal. This Capital Grant will encourage the supply of eco-friendly fuel at affordable tariffs to industries and will encourage industrial development in these states.

The CCEA has approved the simultaneous development of City Gas Distribution (CGD) networks in Varanasi, Patna, Ranchi, Jamshedpur, Bhubaneswar, Kolkata, Cuttack en-route of JHBDPL project. These distribution networks will be developed by GAIL in collaboration with the state governments concerned.

It will bring clean cooking fuel at the door step of domestic households as well as provide clean fuel to transport sector in the eastern region. About 1.25 crore people living in these cities will be directly benefitted by the establishment of these CGD networks. All these projects will generate direct as well as indirect employment for about 21,000 people and will boost socio-economic development.

The cabinet had earlier approved the revival of three fertiliser units (FCIL- Gorakhpur, HFCL- Barauni and FCIL-Sindri) along the route of this pipeline project. On revival, these units will be the anchor gas customers for JHBDPL project and gas to these plants will be supplied under the Gas Pooling Scheme for urea sector at pooled price.

Comments

Other News

Careless whispers and the impossible trinity

Time can never mend, the careless whispers of … As the RBI marches ahead, for the upcoming monetary policy meeting this June, whispers from the corridors echo around several policy options to defend the rupee – by deploying forex reserves, raising in

Bullet Train Project: Third mountain tunnel breakthrough achieved

A major engineering milestone has been achieved in the Mumbai–Ahmedabad Bullet Train Project with the successful breakthrough of the third mountain tunnel (MT-07) at Ambesari village in Dahanu Taluka of Palghar district, Maharashtra. With this achievement, three mountain

Supreme Court gets five new judges

Five new judges were appointed to the Supreme Court of India on Monday. "Vide Notifications of even number dated 01.06.2026, in exercise of the powers conferred by clause (2) of Article 124 of the Constitution of India, the Hon’ble President of India is pleased to appoint (i) Shri

Astonishing breadth and depth of ancient Indian knowledge systems

The Greatest Books of Ancient India: Incredible Ideas about Science, Music, Maths, Art and More By Dr. Pradeep Chakravarthy and Dr. R. Thiagarajan Hachette India, 208 pages, Rs 399

Strong El Nino threat over India`s monsoon, food & water security

India is heading into the southwest monsoon season this year under the shadow of a rapidly strengthening El Nino, with meteorologists warning that the climate phenomenon could significantly disrupt rainfall patterns, intensify heat stress and place additional pressure on the country’s agriculture-d

How corporates can nudge real change

The Business Of Business Is (Not) Just Business: How Behavioural Tools Can Drive Real Change Edited by Sutapa Banerjee, with Foreword by Nadir Godrej HarperCollins, 336 pages, Rs 699