New Delhi: The Cabinet Committee on Economic Affairs (CCEA) on Wednesday approved the North East Gas Grid Project of Indradhanush Gas Grid Ltd (IGGL) with viability gap funding at 60 per cent of the estimated cost of Rs 9,265 crore.
The quantum of viability gap funding will include interest during the construction and not be linked with upward capital cost variation.
The Ministry of Petroleum and Natural Gas (MoPNG) will identify milestones for major activities of the project and link the releases of capital grant.
The total length of the pipeline is 1,656 km. The gas pipeline grid will be developed in eight states — Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim and Tripura.
The project will ensure reliable and uninterrupted natural gas supplies to consumers, according to an official statement.
“Availability of natural gas across the region is expected to boost industrial growth without impacting the environment and offer a better quality of life to the people in general due to use of cleaner and green fuel,” said the statement.
Assam Finance Minister Himanta Biswa Sarma also thanked PM Modi in his tweet for his great gesture
Grateful to PM Sri @narendramodi @dpradhanbjp ji & #Cabinet for approval on Re 5559 cr viability gap funding to IGL for building 1656 km #NorthEast Natural Gas Pipeline Grid. Shall act as bulwark to industrial climate across 8 states in the North East. @PMOIndia @PetroleumMin pic.twitter.com/4saksvaGbX
— Himanta Biswa Sarma (@himantabiswa) January 8, 2020
IGGL is a joint venture company of five central public sector enterprises — IOCL, ONGC, GAIL, OIL and NRL. (ANI)
