GAIL’s Urja Ganga Gas Project Delayed, Completion Pushed to March 2025
Completion of GAIL (India) Ltd.’s Pradhan Mantri Urja Ganga gas pipeline project, which was initially scheduled for June 2024, has been pushed to March 2025. This project, with a budget of Rs. 12,940 crore, targets delivery of Natural gas to the eastern region of India. According to GAIL’s stock filing dated 28th June 2024, the delay is attributed to ‘Delay in Right of Use (RoU)*’ availaibility.
*The Right of Use refers to the legal entitlement granted to a party to utilize a particular asset, typically under specific conditions for a defined period. This concept is often applied in leasing agreements or in the context of property rights.
GAIL’s Natural Gas Pipeline Network Connecting Jagdishpur to Dhamra
GAIL’s Urja Ganga project, also referred to as the Jagdishpur-Haldia-Bokaro-Dhamra pipeline project, involves establishing a 3,306 Km Natural gas pipeline. The company started construction of this pipeline in October 2016. This pipeline is expected to supply 23 Million Metric Standard Cubic Meters Per Day (MMSCMD) of Natural gas and will pass through eastern parts of Uttar Pradesh, Bihar, Jharkhand, Odisha, West Bengal and Assam. Natural gas will be supplied from Phulpur in UP and Dhamra in Odisha.
As per GAIL’s annual report for FY-23, as of March 2023 2,378 Km-long section of this pipeline has been commissioned.
This pipeline also includes a 240 Km-long pipeline connecting Dhamra to Haldia, which will be commissioned by March 2025.
Implementation and Impact of GAIL’s Pipeline in Eastern India
Currently, the pipeline is supplying seven City Gas Distribution (CGD) projects in Varanasi, Patna, Ranchi, Jamshedpur, Kolkata, Bhubaneswar, and Cuttack. Additionally, it connects refineries located in Barauni, Haldia, and Paradip. Upon full completion, this pipeline will integrate Eastern India into the national gas grid, benefiting states like Bihar, Jharkhand, Odisha, Uttar Pradesh, and West Bengal.
Significance of the Urja Ganga Pipeline Project
GAIL’s pipeline will facilitate access to affordable natural gas, thereby reducing dependency on traditional fuels and fostering environmental sustainability. As per Petroleum and Natural Gas Regulatory Board’s (PNGRB) Unified Tariff Regulations, Natural Gas transportation tariff for Eastern India has been reduced to Rs. 99.90 per Million British Thermal Units, which represents a 50% cut. Additionally, the project aims to stimulate job creation and enhance overall infrastructure in the areas it traverses.
About GAIL (India) Limited: GAIL (Gas Authority of India Limited) is a leading state-owned natural gas company in India, established in 1984. With its headquarters in New Delhi, GAIL plays a pivotal role in the country’s energy sector, particularly in the transmission, distribution, and marketing of natural gas and its by-products.
