Centre approves Rs 5,600-cr for 1,656 km-long North East Gas Grid

The Cabinet Committee on Economic Affairs approved Rs 5,559 crore in viability gap funding for a 1,656 km gas grid in the Northeast region.

This is around 60 per cent of the project cost of Rs 9,256 crore for the pipeline in the region's eight states, by Indradhanush Gas Grid (set up by state-run Indian Oil Corporation, Oil and Natural Gas Corporation, GAIL, Oil India, and Numaligarh Refinery), is to supply industries, homes and transport vehicles.

“At present, of the 75 million standard cubic metres a day (mscmd) of natural gas produced in India, around 15 mscmd or 20 per cent is from this region, from Assam, Arunachal Pradesh and Tripura; we also have potential in Nagaland and Manipur. The current decision is going to open up the possibility to explore this potential,” said Dharmendra Pradhan, Union minister of petroleum and natural gas.

The eight states are Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim and Tripura. The government expects availability of gas to boost industrial growth without spoiling the environment.