The CCEA has approved Viability Gap Funding (VGF) at 60 per cent of the estimated cost of Rs 9,265 crore for setting up of the 1,656-Km Indradhanush Gas Grid Limited (IGGL) in the North East region, Assam Industries Minister Chandra Mohan Patowary said on Friday.
He told a press conference here that the rest Rs 3,706 crore shall be funded by five oil-sector public sector undertakings - IOCL, ONGC, GAIL, OIL and NRL.
The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi on January 8 had approved Viability Gap Funding/ Capital Grant of 60 per cent for the IGGL project.
He said that IGGL is a joint venture company of the five Central Public Sector Enterprises incorporated on August 10 last year to develop and operate the natural gas pipeline grid in North-East region,
Patowary said it shall cover all the eight North East states of Assam, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim and Tripura.
Of the total 1,656 km length, approximately 750 km of it shall lie in Assam, he said, adding, of the total cost of Rs 9,265 crore the Assam component shall be Rs 4,065 crores approximately with proportionate costs for the other states.
With work commencing from October 2018, the Assam minister said the project is targeted for completion in March 2023.
Socio-economic and environmental benefits of the pipeline grid would ensure reliable and uninterrupted supply of natural gas to various types of consumers - industrial, Piped Natural Gas (PNG Domestic), CNG (Transport), and would immensely help in substituting the liquid fuels, the minister said.
He also said the project is expected to boost industrial growth in the region with the beneficiaries being power, cement, fertilizers, and tea industry.
Patowary said work for the BGPL commenced in October 2018 and was targeted to be completed in November 2021.
Speaking about Numaligarh Refinery Limited, he said NRL is growing and has put in a total investment amounting to Rs 23,975 crore including Rs 22,594 crore for expansion of the refinery, Rs 1,259 crore for a bio-refinery at Numaligarh.
Total investment in the Oil and Petroleum and Natural Gas sector was Rs 42,782.28 crore for gas grids, NRL and other projects combined, he added.
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