BUSINESS

Cabinet okays Rs.5,176 cr. for GAIL pipeline project

The Cabinet Committee on Economic Affairs (CCEA) has approved viability gap funding of Rs.5,176 crore, which works out to 40 per cent of the estimated capital cost of Rs.12,940 crore, to GAIL for the development of the 2,539-km- long Jagdishpur-Haldia and Bokaro-Dhamra Gas Pipeline (JHBDPL) project.

“It (the pipeline) will ensure the availability of clean and eco-friendly fuel i.e. natural gas to the industrial, commercial, domestic and transport sectors in the states of Uttar Pradesh, Bihar, Jharkhand, Odisha and West Bengal,” according to a statement from the government. “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 pipeline will also supply gas to the defunct fertiliser units in Gorakhpur, Sindri and Barauni which the government is looking to revive. These units are to serve as the anchor customer for the pipeline. These three fertiliser units are to be revived through a special purpose vehicle of National Thermal Power Corporation, Coal India, Indian Oil Corporation and Fertilizer Corporation of India. The CCEA also approved the simultaneous development of city gas distribution networks in Varanasi, Patna, Ranchi, Jamshedpur, Bhubaneswar, Kolkata, and Cuttack along the route of the JHBDPL project.



The grant will encourage the supply of eco-friendly fuel at affordable tariffs

to industries



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