The Government has approved the Viability Gap Funding, VGF of 5 thousand, 559 crore rupees to Indradhanush Gas Grid Limited to build Natural Gas Pipeline Grid covering 8 North Eastern states.
Cabinet Committee on Economic Affairs, CCEA approved the capital grant in New Delhi yesterday. This is second such funding by the government for gas pipeline project.
The total cost of the grid is 9 thousand 256 crore rupees and sanctioned VGF amount will cover 60 per cent cost of the project. The 1,656-km pipeline will connect Guwahati in Assam to major cities in the region such as Itanagar, Dimapur, Kohima, Imphal, Aizawl and Agartala.
Petroleum Minister Dharmendra Pradhan said, the project is critical towards implementing the government’s Hydrocarbon Vision 2030 for the North-East. He said, the Gas Pipeline Grid would be developed in all the eight states of North-Eastern region.
The Capital Grant will provide natural gas supplies to various types of consumers and would help in substituting the liquid fuels. The government said that the pipeline grid would ensure reliability and uninterrupted natural gas supplies to the consumers which otherwise gets severely affected due to various reasons in this part of the country.
The CCEA also gave in principle approval to sell equity held by four Central Public Sector Enterprises and two state PSUs in Neelachal Ispat Nigam Limited-NINL. It approved strategic disinvestment of 49.78 per cent equity shareholding of Minerals and Metals Trading Corporation MMTC Limited and 10.10 per cent of National Mineral Development Corporation. The CCEA, gave approval for strategic disinvestment of point 68 per cent of MECON and Bharat Heavy Electricals Limited each.