Cabinet approves Capital Grant to GAIL for development of Gas Infrastructure in Eastern part of the country

The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri 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 2539 km long Jagdishpur-Haidia and Bokaro-Dhamra Gas Pipeline (JHBDPL) project. Government of India has taken this historic 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 the States of 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.

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

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 population 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 in the eastern part of the country.

Cabinet earlier had 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.

Courtesy – Press Information Bureau, Government of India