Centre to render viability gap funding for North-East gas grid
Intends to raise the share of natural gas in the country’s primary energy mix
The Central government is likely to render Rs 5,500 crore viability gap funding (VGF) to the North-East gas grid. The Prime Minister’s Office has agreed to the Ministry of Oil’s proposal of extending 60% budgetary support to the Rs 9,200 crore North-East Gas Grid Project.
The Centre intends to raise the share of natural gas in the country’s primary energy mix to 15% by 2030 from 6% now. The 1,600 km North-East gas grid will help connect the region to the proposed national grid at Guwahati in Assam.
Indradhanush Gas Grid (IGGL), a joint venture (JV) of Indian Oil, Oil and Natural Gas Corporation, GAIL, Oil India and Numaligarh Refinery, plans to lay the North-East gas grid.
Capital grant of Rs 5,176 crore, or 40% of the project cost, for the 2,500 km pipeline project of GAIL, has been given. A lack of state financial support so far has delayed the launch of the North-East gas grid project by almost a year.