Newdelhi:8/1/20:The Cabinet Committee on Economic Affairs today approved capital grant as viability gap funding to Indradhanush Gas Grid Limited for setting up the North-East Natural Gas Pipeline Grid.
It approved the proposal to provide 5 thousand 559 crore rupees viability gap funding for building a 1 thousand 656 kilometres gas grid. The total cost of the grid is 9 thousand 256 crore rupees.
Briefing media, Petroleum Minister Dharmendra Pradhan said, the project is critical towards implementing the government’s Hydrocarbon Vision 2030 for the North-East.
As per the plan, the Gas Pipeline Grid would be developed in all the eight states of the North-Eastern region.
This is only the second instance that the government directly funding a gas pipeline. In 2016, the government provided a capital grant of 5 thousand 176 crore rupees or 40 per cent of the project cost of the 2 thousand 655 kilometres Jagdishpur-Haldia and Bokaro-Dhamra gas pipeline project.