Cabinet approves capital grant to GAIL

The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Mr. Narendra Modi recently 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.

The Government of India has taken this 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 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. It will bring clean cooking fuel at the door step of domestic households as well as provide clean fuel to transport sector in the eastern region. About 1.25 crore population living in these cities will be directly benefited by the establishment of these CGD networks.

All these projects will generate direct as well as indirect employment for about 21,000 people and will boost socio-economic development in the eastern part of the country.

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