A Major Filip To GAIL’s Eastern Gas Pipeline Project

In a first time ever, the Cabinet Committee on Economic Affairs approved Capital Grant of 40%, amounting to Rs. 5,176 Crores over 5 years, for the pipeline project, to be implemented by GAIL at an estimated capital outlay of Rs. 12,940 Crores. This is the first time ever that Central Government has approved capital Grant for a Natural Gas pipeline project.

A Major Filip To GAIL’s Eastern Gas Pipeline Project

In a major step towards the construction of the Jagadishpur-Haldia-Bokaro-Dhamra Natural Gas Pipeline (JHBDPL), GAIL (India) Ltd has approved placement of orders for pipeline laying work of 345 km from Phulpur to Dobhi under Phase-IB at an estimated cost of Rs 306 crore.

The order is for two sections to be executed simultaneously by JSIW Infrastructure Pvt. Ltd. and IL&FS Engineering & Construction Co. Ltd Laying works under phase-IB shall commence by the end of October, 2016 and targeted to be completed by December, 2018.

GAIL places order for 345 km Pipeline Laying Contract for- Jagadishpur- Haldia-Bokaro- Dhamra PipelineIn a first time ever, the Cabinet Committee on Economic Affairs approved Capital Grant of 40%, amounting to Rs. 5,176 Crores over 5 years, for the pipeline project, to be implemented by GAIL at an estimated capital outlay of Rs. 12,940 Crores. This is the first time ever that Central Government has approved capital Grant for a Natural Gas pipeline project.

“Our Prime Minister has taken a clear and committed stand to move towards a cleaner fuel regime. It is a delightful moment for us as cleaner and greener energy path has been chosen for Eastern India that shall be affordably accessible to the masses,” said Dharmendra Pradhan, Minister for Petroleum & Natural Gas.

“Pipeline and city gas projects under JHBDPL in Eastern India are a big step towards accomplishment of National development goals based on natural gas and the Company shall expeditiously work to execute the entrusted projects in tune with the Government’s objectives as per schedule,” said CMD GAIL, B C Tripathi.

The first phase at a project cost of Rs 3,200 crore and will cover 755 km to cover Phulpur, Mani, Gorakhpur, Varanasi, Dobhi, Silao, Patna and Barauni spread across various sections. Pipeline construction is already under progress along Gaya-Barauni–Patna section.

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The 2,539 km long JHBDPL is scheduled for completion by December 2020 and will connect major cities and towns enroute for commencing piped natural gas to homes across UP, Bihar, Jharkhand, West Bengal and Odisha in addition to supplying feed gas to anchor fertilizer units at Gorakhpur, Barauni and Sindri.

The Line Pipes supplies against orders are expected to commence soon from- M/s Jindal Saw Limited, M/s MAN Industries (India) Limited, M/s Essar Steel India Limited and M/s Zhongyou BSS (Qinhuangdao) Petro pipe Co. Ltd, China.

The JHBDPL pipeline network shall serve to be the gateway for rapidly expanding natural gas based clean energy to Eastern India spanning across five States ushering a new era of growth and development with a potential to serve as a natural gas hub for the neighbouring Asian economies of Nepal and Bangladesh.

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