Bid & Tender
GAIL India to Invest Rs 57.50bn for Pipeline and Distribution Projects in Odisha

Date : Mar 16, 2017

The GAIL (India) Limited on Wednesday announced to invest Rs 57.50 billion for its pipeline projects in Odisha. The investments include Rs 17.50 billion for the City Gas Distribution (CGD) project in Bhubaneswar and Cuttack. As part of the project, natural gas will be supplied to the cities through the Jagdishpur-Haldia and Bokaro-Dhamra natural gas pipe line (JHBDPL), known as 'Pradhan Mantri Urja Ganga'. Households and small industries in the cities can avail Piped Natural Gas (PNG) while vehicles can use Compressed Natural Gas (CNG) once the CGD network becomes operational. Union minister of state for petroleum and natural gas Dharmendra Pradhan will launch the implementation of CGD project at Bhubaneswar on March 18.

 

GAIL director (projects) Dr Ashutosh Karnatak said while 0.25 million households each in Bhubaneswar and Cuttack will be provided PNG in next few years, at least 10,000 houses will be connected by end of December in the capital city on a pilot basis. The 2,619 km (JHBDPL) pipeline project is being executed at an investment of Rs 129.40 billion, which includes capita grant of 40 percent (Rs 51.76 billion) from the Centre. The pipeline will pass through five states - Uttar Pradesh, Bihar, Jharkhand, West Bengal and Odisha--covering 49 districts. Karnatak said the pipeline will be constructed at an estimated investment of Rs 40 billion in Odisha and it will cover 13 districts and a length of about 762 km, including Bhadrak, Jajpur, Dhenkanal, Angul, Sundargarh, Sambalpur, Jharsuguda, Deogarh, Jagatsinghpur, Cuttack, Khurda, Puri and Kendrapara.

 

Natural gas will be supplied to fertiliser sector, power sector, refineries, steel and other sectors through this pipeline. GAIL has been entrusted with developing CGD network in Bhubaneswar, Cuttack, Varanasi, Patna, Jamshedpur, Kolkata and Ranchi cities enroute the pipeline. GAIL Gas Limited CEO P K Pal said while the Bhubaneswar CGD project will entail a capital expenditure of around Rs 10 billion, there will be an investment of Rs 7.50 billion for Cuttack project. It will benefit around 2.5 million people in Khurda and 2.6 million in Cuttack district. "Moreover, 44 CNG stations will be commissioned in first three to five years to supply environment friendly and economic CNG fuel to around 0.15 million vehicles in both the cities," Pal added. GAIL Gas is a subsidiary of GAIL India engaged in CGD activities.