New Delhi: Centre will partly fund a $2 billion gas pipeline project linking five eastern states to help kick-start economic growth in a region that has trailed the rest of the country.
Cabinet Committee on Economic Affairs (CCEA) approved viability gap funding grant at 40 percent (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 project.
It will be the biggest pipeline project in the country and had won government approval in 2007 but could not move forward. JHBDPL project will connect Eastern part of the country with national gas grid.
This capital grant will encourage the supply of eco-friendly fuel at affordable tariffs to industries and will encourage industrial development in these states.
“This will be the first time that government spending will be made for pipeline infrastructure. This will help in achieving the PM’s vision of the economic development of the eastern states,” said oil minister Dharmendra Pradhan.
Further, the CCEA has approved the simultaneous development of City Gas Distribution networks in cities en-route of JHBDPL project.