Cabinet approves Capital Grant as Viability Gap Funding to Indradhanush Gas Grid Limited for setting up the North East Natural Gas Pipeline Grid
The Cabinet Committee on Economic Affairs, chaired by Prime Minister Shri Narendra Modi, has given its approval as under:
The North East Gas Grid project of Indradhanush Gas Grid Limited with viability Gap Funding/ Capital Grant at 60% of the estimated cost of Rs 9265 crore (Including interest during construction). Quantum of VGF would be capped at 60% of estimated project cost and would not be linked with upward capital cost variation.
· MoPNG shall identify milestones for major activities for this project and link the same for releases of capital grant of the project.
For effective monitoring of the project implementation, a Committee comprising of officials from Ministry of Petroleum < Natural Gas, Department of Expenditure, Ministry of Development of North East Region, Ministry of Environment, Forest < Natural Gas Regulatory Board (PNGRB) has also issued provisional authorization to IGGL on 14.09.2018 for the development of North-East Gas pipeline grid.