Cabinet clears viability gap funding for Jagdishpur-Haldia pipeline project

To connect eastern India to national gas grid

The Cabinet Committee on Economic Affairs today approved the viability gap funding for Rs 12,940-crore natural gas pipeline from Jagdishpur to Haldia and Bokaro to Dhamra (JHBDPL).

The pipelines will cover 2,539 kilometres, while the government will fund 40 per cent of the project cost, which is Rs 5,176 crore, as a capital grant through Oil Industry Development Board (OIDB) . The projects will cover states like Uttar Pradesh, Bihar, Jharkhand, Odisha and West Bengal and Gas Authority of India Ltd (GAIL) will provide the remaining funding for the project.

"This will be the first time that OIDB will be giving capital support for develop-ing a gas pipeline project. JHBDPL project will connect Eastern part of the country with National Gas Grid," petroleum minister Dharmendra Pradhan told mediapersons after a CCEA meeting.

Cabinet earlier had approved the revival of three Fertiliser Units at Gorakhpur, Barauni and Sindri. According to Pradhan, these units will be the anchor customers for JHBDPL project. The gas to these plants will be supplied under the gas pooling scheme for urea sector at pooled price. The capital grant will encourage the supply of eco-friendly fuel at affordable tariffs to industries and will encourage industrial development in these states.

Further, the Cabinet Committee on Economic Affairs has approved the simultaneous development of city gas distribution (CGD) networks in Varanasi, Patna, Ranchi, Jamshedpur, Bhubaneswar, Kolkata, Cuttack, which comes on the way of JHBDPL project. These distribution networks will be developed by GAIL in collaboration with the concerned state governments. About 1.25 crore population living in these cities will be directly benefitted by the establishment of these CGD networks. All these projects will generate direct as well as indirect employment for about 21,000 people and will boost socio-economic development in the eastern part of the country.

The prioject is set to be on track by 2019 and will be built on three phases as per reports. While the first phase of 755 km will cost about Rs 3,220 crore, the second phase of more than 1200 km will cost Rs 5,500 crore and the remaining 583 km in the third phase may cost about Rs 3,400 crore.