Govt to provide Rs 5,559 cr viability gap funding to set up gas grid in NE

The Cabinet on Wednesday approved a proposal to provide Rs 5,559 crore viability gap funding for building a 1,656 km gas grid in the Northeast region at a cost of Rs 9,256 crore, Oil Minister Dharmendra Pradhan said.

The decision to provide viability gap funding to Indradhanush Gas Grid Ltd for setting up the North East Natural Gas Pipeline Grid was taken by the Cabinet chaired by Prime Minister Narendra Modi in its meeting.

The government will provide Rs 5,559 cr viability gap funding for building a 1,656 km gas grid in North East at a cost of Rs 9,265 crore, Pradhan said, while addressing media.

"Quantum of viability gap funding will be capped at 60 per cent of estimated project cost; Gas pipeline would be developed in 8 states of north east; this will lead to development of industrial climate in these states and improvement in standard of living of people in the region," the government said.