New Delhi: The Cabinet on Wednesday approved a proposal to provide Rs 5,559 crore viability gap funding to build a 1,656-km gas grid in the Northeast region at a cost of Rs 9,265 crore, said Oil Minister Dharmendra Pradhan.
The decision to provide viability gap funding to the Indradhanush Gas Grid Ltd for setting up the North East Natural Gas Pipeline Grid was taken by the Cabinet chaired by Prime Minister Narendra Modi during its meeting.
The government will provide Rs 5,559 crore viability gap funding to build the gas grid at a cost of Rs 9,265 crore, said Pradhan.
"The quantum of viability gap funding will be capped at 60% of the estimated project cost. The gas pipeline will be developed in eight states of the region; this will lead to the development of industrial climate in these states and improvement in standard of living of people in the region," he said.
The implementation of the project, which the ministry hopes will “help in substituting the liquid fuels”, will be monitored by a committee comprising officials from the Ministry of Petroleum and Natural Gas (MoPNG), Department of Expenditure, Ministry of Development of North East Region, Ministry of Environment, Forest and Climate Change and Department of Fertilizers.
The committee will “periodically review the progress in implementation of the project and take steps to smoothen out any issues in execution”.
The ministry is also exploring the possibility of installing bottling plants for LPG to reduce transportation cost. “Uninterrupted supply of LPG and other value added products can be ensured in the region which will bring energy security to the people in the area,” the release from the government added.
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