GAIL completes award of contract for Pradhan Mantri Urja Ganga pipeline project

State-owned gas utility GAIL India Friday said it has completed awards for all major contracts for the ambitious Pradhan Mantri Urja Ganga natural gas pipeline project that transverse from Jagdishpur to Haldia and Bokaro (Jharkhand) and Dhamra in Odisha.

In a statement, GAIL said it has placed a Rs 475 crore order for steel pipes of about 280-kilometers to provide pipeline connectivity from Durgapur to Haldia, including spur lines to Kolkata in West Bengal.

This completes contracting for the 3,400-km Jagdishpur (Uttar Pradesh) -Haldia (West Bengal) & Bokaro - Dhamra Natural Gas Pipeline (JHBDPL).

"Till date, the company has committed over Rs 12,500 crore for the project," GAIL said.

The pipeline has already reached Barauni in Bihar and GAIL is ready for supplying gas to a refinery and upcoming fertiliser plant. The pipeline also supplies natural gas for Patna city gas distribution network (CGD).

"This is a major milestone towards providing green fuel to the eastern part of the country," it said, adding the work for balance portion is going on in full swing and is scheduled to be completed by December 2021 in a phased manner.

The construction work of Dobhi-Durgapur Pipeline section is likely to be completed by December 2019 for supplying gas to Matix Fertilizers, Durgapur, West Bengal.

The PSU is currently executing around 5,500 km of pipeline costing Rs 25,000 crore to provide gas supply largely to areas of eastern and southern parts of the country.

Another 1,400 km pipeline involving capex of Rs 7,000 crore is under evaluation which is targeted to be completed by 2023.

These pipeline projects by GAIL will be part of the National Gas Grid, providing Natural Gas to areas hitherto untouched by the green fuel.

GAIL Chairman and Managing Director B C Tripathi said the company is committed towards creating the National Gas Grid to provide natural gas connectivity throughout the country.

"GAIL will soon raise loan for the upcoming huge capex programme for laying natural gas-related infrastructure," he said.

GAIL, he said, had exceeded its capex target of Rs 6,400 crore for 2018-19 fiscal.

"Major contracts for integrated JHBDPL have been awarded which will contribute to the economic development of the country and provide employment opportunities in the pipeline project and city gas distribution networks in the country," he added.