CCEA approves 5176 crore rupees Capital Grant for GAIL pipeline project

Sep 22, 2016 15:00 IST

The Cabinet Committee on Economic Affairs (CCEA) on 21 September 2016 approved the partial capital grant of 5176 crore rupees to GAIL (India) Limited for development of 2539 km long Jagdishpur-Haidia and Bokaro-Dhamra Gas Pipeline (JHBDPL) project.

September CA eBook

This grant is 40 percent of the total estimated capital cost of 12940 crore rupees.

Highlights of the JHBDPL project
• 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 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.

Other Development

The CCEA also 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.

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