CCEA approves Capital Grant to GAIL to develop Gas Infrastructure in Eastern part of the country

September 22, 2016

The Cabinet Committee on Economic Affairs (CCEA) has approved capital grant of Rs. 5,176 crore for development Gas Infrastructure in Eastern part of the country.
The grant in the form of viability gap funding (partial capital grant) at 40% will be used for the 2539 km long Jagdishpur-Haidia and Bokaro-Dhamra Gas Pipeline (JHBDPL) project.
Key Facts

JHBDPL project will connect Eastern part of the country i.e. States of Uttar Pradesh, Bihar, Jharkhand, Odisha and West Bengal with National Gas Grid.
It will ensure the availability of clean and eco-friendly fuel i.e. Natural Gas to the industrial, commercial, domestic and transport sectors.
The Capital Grant will encourage the supply of eco-friendly fuel at affordable tariffs to industries. Thus, it will encourage industrial development in these states.

City Gas Distribution (CGD) networks

Further, the CCEA also has approved the simultaneous development of City Gas Distribution (CGD) networks in cities en-route of JHBDPL project.
These cities are Varanasi, Patna, Ranchi, Jamshedpur, Bhubaneswar, Kolkata.
These distribution networks will be developed by GAIL in collaboration with concerned State Governments.
They will provide clean cooking fuel at the door step of Domestic households as well as provide clean fuel to transport sector in the eastern region.
These CGD networks will be directly benefit about 1.25 crore population living in these cities.
Besides, all these projects will generate direct as well as indirect employment for about 21,000 people. It will also boost socio-economic development in eastern part of country.

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