North East Gas Grid Project: Can we Promote Natural Gas as a Sustainable Fuel?

On January 8th, 2020, the Cabinet Committee on Economic Affairs approved funding of INR 5,559 Crore for the North-East Gas Grid project. The proposed length of the gas grid pipeline is 1,656 km. The Project will connect Guwahati in Assam to major cities in the North-East Region– Itanagar, Dimapur, Kohima, Gangtok, and Numaligarh to name a few. The original budget for the project was INR 9,262 Crore. The lack of anchor customers makes the Project less economically viable, hence, the government has provided a viability gap funding of 60%, and the association in charge of the Project has stated that the remainder of the funding will be raised through equity and debt. (more…)