NORTHEAST GAS PIPELINE GRID GETS GOVERNMENT FUNDING
January 9, 2020
Cabinet Committee on Economic Affairs (CCEA) on 8th January approved a ₹5,559 crore viability gap funding for the proposed Northeast Gas Grid. (Gas Pipeline)
The 1,656-km North-East
Natural Gas Pipeline Grid will connect Guwahati in Assam to major cities in the
region such as Itanagar, Dimapur, Kohima, Imphal, Aizwal, Agartala,
Shillong, Silchar, Gangtok, and Numaligarh.
The pipeline will enable the
supply of piped cooking gas to households and CNG to automobiles, besides
fuel to industry.
The North-East pipeline grid
is to be implemented by Indradhanush Gas Grid, a joint venture of
state-owned GAIL India, Indian Oil Corp (IOC), Oil and Natural Gas Corp
(ONGC), Oil India Ltd (OIL) and Numaligarh Refinery Ltd (NRL).
The consortium had pitched
for a 60 per cent funding support from the government and would raise the
rest via equity and debt. Without government support, the pipeline will
not be viable.
The pipeline will not be
viable due to the absence of anchor customers.
Availability of natural gas
across the region is expected to boost industrial growth without impacting
the environment and would offer better quality of life to the people in
general due to use of cleaner and green fuel.
pipeline projects in the past
This is the second time that
a gas pipeline project in the country will be funded by the government.
In 2016, the government
provided a capital grant of ₹5,176 crore, or 40% of the project cost of
the 2,655-km Jagdishpur-Haldia and Bokaro-Dhamra (JHBDPL) gas pipeline
project, which GAIL is currently executing.