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

North-East gas grid, Ministry of Oil, Natural gas, Guwahati, Assam, Indradhanush Gas Grid, Indian Oil, Oil and Natural Gas Corporation, GAIL, Oil India, Numaligarh Refinery

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.

Most Popular

Awards

Olympia Group announces to build up 1.1mn sq-ft greenfield it park in Guindy
The project will have a total investment of about Rs 750 crore

Conferences

Vital pre-monsoon building works resume in Maharashtra
The state government has permitted pre-monsoon work by BMC and other agencies

Latest Issue

Sept 2020
01 Sep 2020