Capital Grant to GAIL Approved

2019 ias preliminary exam test series

The Cabinet Committee on Economic Affairs has approved viability gap funding / partial capital grant at 40 percent (Rs. 5,176 crore) of the estimated capital cost of Rs. 12,940 crore to GAIL for development of 2539 km long Jagdishpur-Haidia and Bokaro-Dhamra Gas Pipeline (JHBDPL) project.

Government of India has taken this historic decision to provide Capital Support for developing this gas pipeline.

JHBDPL project will connect Eastern part of the country with National Gas Grid.

It will ensure the availability of clean and eco-friendly fuel i.e. Natural Gas to the industrial, commercial, domestic and transport sectors in the States of Uttar Pradesh, Bihar, Jharkhand, Odisha and West Bengal.

This Capital Grant will encourage the supply of eco-friendly fuel at affordable tariffs to industries and will encourage industrial development in these states.

Further, the CCEA has approved the simultaneous development of City Gas Distribution (CGD) networks in cities namely Varanasi, Patna, Ranchi, Jamshedpur, Bhubaneswar, Kolkata, Cuttack etc. en-route of JHBDPL project.

These distribution networks will be developed by GAIL in collaboration with the concerned State Governments.

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