Government to part-finance GAIL’s Rs 13,000-crore pipeline project – Feedback

The government has agreed to partly fund the Rs 13,000-crore natural gas pipeline from Jagdishpur in Uttar Pradesh to Haldia in West Bengal, state- owned gas utility GAIL India said today.

The government will provide Rs 5,176 crore or about 40 per cent of the project cost after the state-owned gas utility found it difficult to commercially justify the huge investment of Rs 12,940 crore in absence of either a firm source of gas supply or customers. “The ministry of petroleum and natural gas vide letter dated October 7, 2016 has communicated the Cabinet Committee on Economic Affairs (CCEA) approval for 40 per cent capital grant (limited to Rs 5,176 crore) of the total estimated project cost of Rs 12,940 crore to GAIL for the execution of Jagdishpur-Haldia/Bokaro-Dhamra natural gas pipeline projects,” it said in a stock exchange filing. The 2,539-km long pipeline from Jagdishpur in Uttar Pradesh to Haldia in West Bengal and also Bokaro in Jharkhand and Dhamra in Odisha will be completed by 2020.

http://economictimes.indiatimes.com/industry/energy/oil-gas/government-to-part-finance-gails-rs-13000-crore-pipeline-project/articleshow/54780534.cms

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