GAIL to soon restart work on Rs 10,000-cr Energy Highway

Written by fe Bureau | New Delhi | Updated: Aug 25 2014, 06:33am hrs
GAIL (India) on Sunday said work was set to commence on the 2,050-km Jagdishpur-Phulpur-Haldia natural gas pipeline, which will serve as the Energy Highway for West Bengal, Bihar, Jharkhand and Uttar Pradesh. GAIL's move follows the recent announcement by Prime Minister Narendra Modi to connect Eastern India with the national gas grid.

Construction of the Rs 10,000-crore pipeline was held up due to lack of anchor load or, simply put, not enough buyers of gas.

The pipeline will benefit four states, as it would facilitate setting up of city gas networks in 17 major cities of the region, including Varanasi, Allahabad, Patna, Gaya, Chhapra, Siwan, Gopalganj, Mujaffarpur, Bettiah, Bhagalpur, Bokaro, Dhanbad, Ranchi, Jamshedpur, Asansol, Durgapur and Kolkata.

Besides city gas distribution, the pipeline will supply feedstock/fuel to fertiliser and power plants and major industries located in the region, GAIL said in a statement.

The estimated investment for the Jagdishpur-Phulpur-Haldia pipeline project is about Rs 10,000 crore. The first phase of the pipeline will have a capacity of 16 mmscmd, which would be augmented to 32 mmscmd in the second phase.