Centre gives Rs 5.1K cr to link Eastern India with gas grid

New Delhi, Sep 21 (PTI) The Centre today approved Rs 5,176crore for funding the JHBDPL gas pipeline project, which willconnect eastern part of the country with the national grid. The implementation of the project will ensure natural gassupply to the industrial, commercial, domestic and transportsectors in five states — Uttar Pradesh, Bihar, Jharkhand,Odisha and West Bengal. "The Cabinet Committee on Economic Affairs, chaired byPrime Minister Narendra Modi has approved viability gapfunding/partial capital grant at 40 per cent (Rs 5,176 crore)of the estimated capital cost of Rs 12,940 crore to GAIL fordevelopment of 2,539 km long Jagdishpur-Haidia andBokaro-Dhamra Gas Pipeline (JHBDPL) project," said a pressrelease. The Centre has taken this ‘historic decision’ to provideCapital Support for developing this gas pipeline, it added. The project will connect eastern part of the country withNational Gas Grid. This grant will encourage supply of eco-friendly fuel ataffordable tariffs to industries and will encourage industrialdevelopment in these states, the release said. CCEA has also approved the simultaneous development ofCity Gas Distribution (CGD) networks in cities includingVaranasi, Patna, Ranchi, Jamshedpur, Bhubaneswar, Kolkata,Cuttack en-route of the JHBDPL project. These distribution networks will be developed by GAIL incollaboration with the concerned states. It will bring clean cooking fuel at the door step ofDomestic households as well as provide clean fuel to transportsector in the eastern region. About 1.25 crore population living in these cities will bedirectly benefitted by the establishment of these CGDnetworks. All these projects will generate direct as well asindirect employment for about 21,000 people and will boostsocio-economic development in the eastern part of the country. The Cabinet earlier had approved the revival of threeFertiliser Units (FCIL-Gorakhpur, HFCL-Barauni and FCIL-Sindri) along the route of this pipeline project. On revival, these units will be the anchor gas customersfor JHBDPL project and gas to these plants will be suppliedunder the Gas Pooling Scheme for urea sector at pooled price,it added. PTI KKSSA