The length of the natural gas pipeline grid is 1,656 KMs and tentative project cost of Rs 9,265 crore Credit: Representational image

Agartala: The Union cabinet on Wednesday approved a capital grant of Rs 9,265 crore as viability gap funding (VGF) to Indradhanush Gas Grid Limited (IGGL) for setting up the North-East Natural Gas Pipeline Grid (NENGPG) with a total length of 1656 KMs covering 8 states of NE region.

A press communiqué from the PIB informed that the North East Gas Grid project of IGGL with a capital grant at 60% of estimated project cost of Rs 9,265 crore (including interest during construction). The quantum of VGF would be capped at 60% of the estimated project cost and would not be linked with upward capital cost variation.

“For effective monitoring of the project implementation, a committee comprising of official from ministry of petroleum and natural gas, department of expenditure, ministry of development of north east region (DONER), ministry of environment, climate change and department of fertilizers may be formed which would periodically review the progress of implementation of the project and take steps to smoothen out any issues in execution”, communiqué reads.

The total length of the pipeline is 1,656 KMs and tentative project cost is Rs 9,265 crore. As per the plan, gas pipeline grid would be developed in the eight states of NE region which includes Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim and Tripura.

The capital grant would provide natural gas supplies to various types of consumers viz. industrial, PNG (domestic), CNG (transport), etc and would immensely help in substituting the liquid fuels. 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.

The availability of natural gas across to region is expected to boost industrial growth without impacting the environment and would offer a better quality of life to the people in general, due to the use of cleaner and green fuel.

On behalf of the people of Tripura and North East, chief minister Biplab Kumar Deb thanked Prime Minister Narendra Modi and union minister of Petroleum, Natural Gas and Steel Dharmendra Pradhan for approving capital grant of Rs 9,265 crore.

In his tweet, Deb wrote, On behalf of the people of Tripura & NE, I thank PM Narendra Modi Ji & Min of Petroleum, Natural Gas & Steel Dharmendra Pradhan ji for initiating to set up North-East Natural Gas pipeline grid at a tentative project cost of ₹9265 crore which will provide uninterrupted Gas supply.

“The VGF to IGGL will help in providing uninterrupted supply of natural gas which will boost the industrial growth without impacting the environment. This will also create job opportunities and help in further economic growth in NE region”, he added.

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