Dimapur, January 9 (NE): The cabinet committee on economic affairs, chaired by Prime Minister, Government of India, Shri Narendra Modi has given its approval for the North East Gas Grid project of Indradhanush Gas Grid Limited with Capital Grant at 60 per cent of the estimated cost of Rs 9,265 crore for Nagaland including North East India on January Eight.
Nagaland Chief Minister Neiphiu Rio took to twitter to thank Prime Minister Narendra Modi and Dharmendra Pradhan, Minister of Petrol and natural gas, Minister of steel, GoI, for this step towards economic development of the NE by leveraging its hydrocarbon potential.
Capital Grant as Viability Gap Funding to @IGGL_In approved for setting-up #NorthEast Natural Gas Pipeline Grid.Grateful to Hon'ble @PMOIndia Shri @narendramodi & @dpradhanbjp for this step towards economic dev. of the NE by leveraging its hydrocarbon potential. #CabinetDecision pic.twitter.com/viisGKScmC
— Neiphiu Rio (@Neiphiu_Rio) January 8, 2020
According to a PIB release, total length of the pipeline is 1656 km and tentative project cost is Rs 9,265 crore. As per the plan, Gas Pipeline Grid would be developed in the eight Northeast states of Nagaland, Assam, Tripura, Arunachal Pradesh, Manipur, Meghalaya, Mizoram and Sikkim.
Availability of natural gas across the region is expected to boost industrial growth without impacting the environment and would offer better quality of life to the people in general due to the use of cleaner and green fuel, it stated.
The release continued that the project will bring about development of industrial climate in eight states. It will also help reduce the usage of kerosene, wood, etc due to increased usage of environment-friendly fuel- natural gas thereby improving the environment in the region, it maintained.
The project will also boost exploration and production activities and connect regional gas sources with pipeline network for early monetisation of natural resources in the region, it stated.
For effective monitoring of the project implementation, a committee comprising officials from Petroleum and Natural Gas Ministry, department of Expenditure, Development of North East Region Ministry, Ministry of Environment, Forest and Climate Change and department of Fertilizers, may be formed, which would periodically review the progress in implementation of the project and take steps to smoothen out any issues in execution, the release added.
The Capital Grant will provide natural gas supplies to various types of consumers viz. Industrial, PNG (Domestic), CNG (Transport) and would immensely help in substituting the liquid fuels, it stated, adding that the pipeline grid would ensure reliability and uninterrupted natural gas supplies to the consumers which otherwise gets severely affected due to various reasons in this part of the country.
To usher in gas-based economy and to increase the share of natural gas in country’s primary energy mix, the government is taking focused steps by enhancing domestic gas production, expeditious development of gas infrastructure, including pipelines, City Gas Distribution (CGD) networks and Re-gasified Liquefied Natural Gas (R-LNG) Terminals as well as development of Gas market by providing open access to gas infrastructure, it said.
Indradhanush Gas Grid Limited (IGGL), a joint venture company of five CPSEs (IOCL, ONGC, GAIL, OIL and NRL) has been incorporated on August 10, 2018, to develop and operate Natural gas pipeline grid in Northeast region.
The Petroleum and Natural Gas Regulatory Board (PNGRB) had also issued provisional authorisation to IGGL on September 14, 2018 for the development of Northeast gas pipeline grid, it added.