The Union Cabinet has approved a proposal to provide Rs 5,559 crore viability gap funding for building a 1,656-km gas grid in the Northeast region at a cost of Rs 9,256 crore.

The decision to provide the funding to Indradhanush Gas Grid Ltd for setting up the North East Natural Gas Pipeline Grid was taken at a Cabinet meeting chaired by Prime Minister Narendra Modi on January 8.

National Gas Grid

The Centre has envisaged a National Gas Grid. According to the government, a network of 16,788-km natural gas pipelines is operational and about 14,239-km gas pipelines are being developed to increase the availability of natural gas across the country.

These pipelines have been authorised by the Petroleum and Natural Gas Regulatory Board (PNGRB) and are at various stages of execution.

The PNGRB has authorised GAIL to develop the approximately 750-km Barauni-Guwahati pipeline as an integral part of the Jagdishpur-Haldia-Bokaro Dhamra Pipeline (JHBDPL) project, which will connect the Northeast with the National Gas Grid.

Further, the PNGRB has also authorised Indradhanush Gas Grid Ltd (IGGL) for the development of the Northeast gas grid to connect the eight states of the region.

IGGL is a joint venture of IOCL, ONGC, GAIL, OIL and NRL. It was incorporated on August 10, 2018, towards implementing the Hydrocarbon Vision 2030 for the Northeast.

Hydrocarbon Vision 2030 envisages the Northeast’s economic development by leveraging the region’s hydrocarbon potential, enhancing access to clean fuel and accelerating the growth of the entire region.

Gas grid roadmap

As per the plan, a gas pipeline grid will be developed in the eight states of the Northeast region - Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim and Tripura.

The total length of pipeline is 1,656 km and the tentative project cost is Rs 9,265 crore.

The project will connect all the states in the Northeast to the National Gas Grid through the Barauni-Guwahati gas pipeline. From Guwahati, the pipeline will extend to Numaligarh, Dimapur, Kohima and Imphal in one direction; Shillong, Silchar, Aizawl and Agartala in the second direction and to Itanagar in the third direction. Gangtok will be connected from Siliguri from the gas pipeline of GAIL coming from Barauni to Guwahati.

Project benefits

* The grid would ensure reliable and uninterrupted natural gas supplies to consumers in the region, which otherwise gets severely affected due to various reasons.

* Availability of natural gas across the region is expected to boost industrial growth without impacting the environment and would offer better quality of life for the people in general due to the use of cleaner and greener fuel.

* It will boost the development of industrial climate in the region.

* Reduction in the usage of kerosene and wood due to increased usage of natural gas, thereby improving the environment in the region.

* It will improve the standard of living of people in the region.

* It will be a fillip to exploration and production activities and connect regional gas sources with the pipeline network for early monetisation of natural resources in the region.

* The possibility of installing bottling plants for LPG can be explored for reducing 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.

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