The Indian government will partly fund a pipeline project linking five eastern states, the first such move by the country as it aims to gradually move to a gas-based economy.
The Centre today approved Rs 5,176 crore for funding the JHBDPL gas pipeline project, which will connect eastern part of the country with the national grid.
The implementation of the project will ensure natural gas supply to the industrial, commercial, domestic and transport sectors in five states — Uttar Pradesh, Bihar, Jharkhand, Odisha and West Bengal.
“The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi has approved viability gap funding/partial capital grant at 40 per cent (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,” said a press release.
The Centre has taken this ‘historic decision’ to provide Capital Support for developing this gas pipeline, it added.
The project will connect eastern part of the country with National Gas Grid.
This grant will encourage supply of eco-friendly fuel at affordable tariffs to industries and will encourage industrial development in these states, the release said.
CCEA has also approved the simultaneous development of City Gas Distribution (CGD) networks in cities including Varanasi, Patna, Ranchi, Jamshedpur, Bhubaneswar, Kolkata, Cuttack en-route of the JHBDPL project.
These distribution networks will be developed by GAIL in collaboration with the concerned states.
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.
The 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, it added.