With the GAIL (India) Limited evincing interest to invest in domestic gas distribution in the State, supply of piped cooking gas to households will soon be a reality here.
The largest State-owned natural gas processing and distribution company, GAIL on Wednesday announced to invest `5,750 crore for its gas pipeline and distribution networks in Odisha.
While the Maharatna PSU will invest `4,000 crore for its natural gas pipeline, `1,750 crore will be spent for the City Gas Distribution (CGD) project in the Twin City of Bhubaneswar and Cuttack.
Union Minister of State for Petroleum and Natural Gas Dharmendra Pradhan is slated to launch the implementation of CGD project here on Saturday.
GAIL Director (Projects) Ashutosh Karnatak said the project will benefit around 25 lakh people in Khurda and 26 lakh in Cuttack districts. Around five lakh households will be supplied with piped domestic natural gas in next three years, he said.
Natural gas will be supplied to the cities through Jagdishpur-Haldia and Bokaro-Dhamra natural gas pipeline (JHBDPL). 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.
‘’Around 2.5 lakh households each in Bhubaneswar and Cuttack will be provided PNG by 2020. We are planning to connect 10,000 houses by end of December in the Capital City on a pilot basis. Apart from fulfilling the need of safe fuel, the project will also provide employment opportunities to many,’’ Karnatak said.
The 2,619 km JHBDPL pipeline project being executed at an investment of `12,940 crore, including capital grant of 40 per cent (`5,176 crore) from the Centre, will pass through Uttar Pradesh, Bihar, Jharkhand, West Bengal and Odisha covering 49 districts.
The pipeline will have a length of about 762 km in 13 districts of Bhadrak, Jajpur, Dhenkanal, Angul, Sundargarh, Sambalpur, Jharsuguda, Deogarh, Jagatsinghpur, Cuttack, Khurda, Puri and Kendrapara.
Natural gas will be supplied to sectors like fertiliser, power, refineries, steel and others through this pipeline. GAIL will also develop CGD network in cities like Varanasi, Patna, Jamshedpur, Kolkata and Ranchi apart from Bhubaneswar and Cuttack.
GAIL Gas Limited CEO PK Pal said while Bhubaneswar CGD project will entail a capital expenditure of around `1,000 crore, there will be an investment of `750 crore for Cuttack project.
‘’Moreover, 44 CNG stations will be commissioned in three to five years to supply environment friendly and economic CNG fuel to around 1.5 lakh vehicles in both the cities,’’ Pal added. GAIL Gas is a subsidiary of GAIL India engaged in CGD activities.