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.

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