GAIL Current Affairs - 2019

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GAIL awards major contracts for Pradhan Mantri Urja Ganga

State-run Gas (India) Limited (GAIL) has placed orders for another 400-km natural gas pipeline project under ambitious Pradhan Mantri Urja Ganga (PMUG). The orders were placed for 400-km for pipeline from Dobhi (Bihar) to Durgapur (West Bengal).

With this, the total pipe supply orders for 2,100 km of Jagdishpur-Haldia & Bokaro-Dhamra Natural Gas Pipeline (JHBDPL) project have been placed. GAIL also has placed 1,700 km of line laying orders.

Pradhan Mantri Urja Ganga

The ambitious 2,655 km long JHBDPL project also known as ‘Pradhan Mantri Urja Ganga’ project originates at Jagdishpur (Uttar Pradesh). The main trunk of pipeline ends to Haldia (West Bengal) and Dhamra (Odisha). The pipeline passes through Uttar Pradesh, Bihar, Jharkhand, West Bengal and Odisha. The total cost of project is Rs. 12,940 crore and is targeted to be completed by 2019.

The project is being implemented by state-run gas utility GAIL. It will augment GAIL’s existing network of trunk pipelines covering the length of around 11,000 km by 2540 km.


The project is considered as a major step towards collective growth and development of the Eastern region of India. It will provide clean energy to households and transportation in the cities en-route the pipeline. It will usher Industrial development in East India by supplying environmentally clean natural gas to fertiliser and power plant, refineries, steel plants and other industries. Seven big east India cities viz. Varanasi, Jamshedpur, Patna, Ranchi, Kolkata, Bhubaneswar, Cuttack – will be the major beneficiary of this project.

Gas (India) Limited (GAIL)

GAIL is the largest state-owned natural gas processing and distribution company in India. It is headquartered in New Delhi. It has following business segments: natural gas, liquefied petroleum gas transmission, liquid hydrocarbon, city gas distribution, petrochemical, exploration and production, GAILTEL and electricity generation. It was conferred with the Maharatna status in February 2013 by the Government of India. Only six other Public Sector Enterprises (PSEs) enjoy this coveted status amongst all central CPSEs.

CCEA approves Capital Grant to GAIL to develop Gas Infrastructure in Eastern part of the country

The Cabinet Committee on Economic Affairs (CCEA) has approved capital grant of Rs. 5,176 crore for development Gas Infrastructure in Eastern part of the country.

The grant in the form of viability gap funding (partial capital grant) at 40% will be used for the 2539 km long Jagdishpur-Haidia and Bokaro-Dhamra Gas Pipeline (JHBDPL) project.

Key Facts

  • JHBDPL project will connect Eastern part of the country i.e. States of Uttar Pradesh, Bihar, Jharkhand, Odisha and West Bengal with National Gas Grid.
  • It will ensure the availability of clean and eco-friendly fuel i.e. Natural Gas to the industrial, commercial, domestic and transport sectors.
  • The Capital Grant will encourage the supply of eco-friendly fuel at affordable tariffs to industries. Thus, it will encourage industrial development in these states.

City Gas Distribution (CGD) networks

  • Further, the CCEA also has approved the simultaneous development of City Gas Distribution (CGD) networks in cities en-route of JHBDPL project.
  • These cities are Varanasi, Patna, Ranchi, Jamshedpur, Bhubaneswar, Kolkata.
  • These distribution networks will be developed by GAIL in collaboration with concerned State Governments.
  • They will provide clean cooking fuel at the door step of Domestic households as well as provide clean fuel to transport sector in the eastern region.
  • These CGD networks will be directly benefit about 1.25 crore population living in these cities.
  • Besides, all these projects will generate direct as well as indirect employment for about 21,000 people. It will also boost socio-economic development in eastern part of country.