Gujarat seeks Rs 6,600 cr from Centre for gas pipeline projects

The Gujarat government has sought Rs 6,600 crore from the Union government for part financing two gas pipeline projects by the state-run Gujarat State Petronet Ltd (GSPL), Parliament was informed .

“The government of Gujarat in the month of October 2016 has requested the Ministry of Petroleum and Natural Gas (MoP&NG) to consider a capital grant of 40 per cent” Petroleum Minister Pradhan told the Lok Sabha in a written reply regarding the Mehsana-Bhatinda-Jammu-Srinagar Pipeline (MBJSPL) and the Mallavaram-Bhopal-Bhilwara-Vijaipur Pipeline (MBBVPL) projects.

While the 2,042 km Mallavaram-Bhopal-Bhilwara-Vijaipur pipeline will cost Rs 8,086 crore, the 2775 km Mehsana to Srinagar via Bhatinda line will cost Rs 8,384 crore.

“The government of Gujarat had also approached the Ministry of Finance for financial support from the Asian Development Bank for execution of MBBVPL project,” Pradhan said.

“Keeping in view the importance of this pipeline project, MoP&NG has conveyed its support to the request of government of Gujarat for financial assistance from ADB to the Ministry of Finance in this regard,” he added.

In its first such funding of a gas pipeline project, the central government is providing Rs 5,176 crore, or about 40 per cent of the project cost.

Pradhan said the Gujarat government has also asked for “grant of authorisation for development of city gas distribution networks on nomination basis on the lines of support provided to GAIL for its Jagdishpur-Haldia and Bokaro-Dhamra natural gas pipeline project.”.

The minister also told the Lok Sabha that the regulator Petroleum and Natural Gas Regulatory Board (PNGRB) has granted an extension for completing the two projects up to December 2017.