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Centre mulls Rs 5,400 cr funding to Northeast gas grid

Thursday, 29 Aug 2019
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The Central government is considering investing around Rs 5,400 crore in viability gap funding for a proposed Northeast gas grid. The 1,656 km North-East Natural Gas Pipeline Grid will connect Guwahati in Assam to major cities in the region such as Itanagar, Dimapur, Kohima, Imphal, Aizwal, Agartala, Shillong, Silchar, Gangtok and Numaligarh. The project will entail an investment of Rs 9,000 crore.

A viability gap funding of 60 percent of the project cost has been sought. The Northeast pipeline grid is to be implemented by Indradhanush Gas Grid, a joint venture (JV) of GAIL India, Indian Oil Corporation (IOC), Oil and Natural Gas Corporation (ONGC), Oil India (OIL) and Numaligarh Refinery (NRL).

The consortium has pitched for 60 percent funding support from the government and will raise the rest via equity and debt.

GAIL India is also laying 750 km line from Barauni to Guwahati as part of the Rs 12,940 crore Jagdishpur-Haldia-Bokaro-Dhamra Pipeline (JHBDPL) project, which is also known as the Pradhan Mantri Urja Ganga project. This is proposed to be connected to the Northeast via the Indradhanush grid.

The project is critical towards implementing the government's Hydrocarbon Vision 2030 for Northeast. At present, about 16,788 km natural gas pipeline is operational and about 14,239 km gas pipelines are being developed to increase availability of natural gas across the country.

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