CCEA Approves City Gas Distribution Networks in Several Cities Including Bhubaneswar , Cuttack
21 September, New Delhi
The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has approved viability gap funding/ partial capital
grant at 40 percent (Rs. 5,176 Crore) of the estimated capital cost of Rs.12,940 Crore to GAIL for development of 2539 km long Jagdishpur-Haldia
and Bokaro-Dhamra (JHBDPL) Gas Pipeline project.
It will ensure the availability of clean and eco-friendly fuel i.e. Natural Gas to the industrial, commercial, domestic and transport sectors in Odisha, said Union Petroleum Minister Dharmendra Pradhan.
Briefing the media after the Cabinet meeting ,Pradhan said that other states also benefiting from the project will be Uttar Pradesh, Bihar, West Bengal and Jharkhand. Further, the CCEA has approved the simultaneous development of City Gas Distribution (CGD) networks in Bhubaneswar and
Cuttack. Other cities, lying en-route of JHBDPL project- Varanasi, Patna, Kolkata, Ranchi, Jamshedpur etc. will also get city gas distribution.
Government of India has taken this historic decision to provide Capital Support for developing Jagdishpur-Haldia and Bokaro-Dhamra gas pipeline.
JHBDPL project will connect eastern part of the country with the National Gas Grid. This Capital Grant will encourage the supply of eco-friendly fuel at affordable tariffs to industries and will encourage industrial development in these states.
The Cabinet earlier had approved the revival of three Fertilizer Units (FCIL- Gorakhpur, HFCL- Barauni and FCIL-Sindri) along the route of this
pipeline project. On revival, these units will be the anchor gas customers for JHBDPL project and gas to these plants will be supplied under the Gas
Pooling Scheme for urea sector at pooled price.
City Gas Distribution (CGD) networks in cities are to be developed by GAIL in collaboration with the concerned State Governments. It will bring cleancooking fuel at the door steps of Domestic households as well as provide clean fuel to transport sector in the eastern region.
About 1.25 crore population living in these cities will be directly benefited by the establishment of these CGD networks. All these projects will generate direct as well as indirect employment for about 21000 people and will boost Socio-Economic development in the eastern part of the country.