$247m Adb Loan For Kandla-Delhi Gas Pipeline

The Asian Development Bank (ADB) has sanctioned a $247 million loan for the Kandla-Delhi LPG pipeline of the Gas Authority of India Ltd (GAIL).

The pipeline, which will transport imported LPG from Kandla to Delhi, is expected to cost Rs 1,540 crore. The balance amount will be financed by GAIL from its internal resources.

The project has already been given stage-I clearance by the Public Investment Board (PIB). The stage-II PIB clearance was held up because of some environmental issues which have been sorted out. The final clearance of PIB is expected shortly.

The pipeline is expected to be implemented in two phases. In the first phase, the throughput of the pipeline would be of the order of 2.1 million metric tonne per annum (mmtpa) which would go up to 3.03 mmtpa after completion of the second phase.

 

As per the route of the 1,700 km pipeline drawn up by GAIL, it would start from Kandla and pass through Okha, Ajmer and Jaipur before reaching Delhi. Besides picking up the imported LPG at Kandla, LPG from Jamnagar, Hazira and Gandhar would also be transported to north through the pipeline.

All along the route, the pipeline would have a number of outlets where LPG would be delivered for bottling. The bottling plants along the route are also being planned with GAILs assistance.The 16-inch diameter pipeline is expected to have a life of 35 years.

Tenders for the pipeline are expected to be floated in July-August. The tender evaluation will be done by Engineers India Limited (EIL) who are the consultants to GAIL.

According to the project implementation schedule drawn up GAIL, the pipeline project is expected to be completed in 36 months.