Delay in India's Ambitious Rs 12,940-Crore 'Urja Ganga' Gas Pipeline Project

The Rs 12,940-crore 'Urja Ganga' gas pipeline project, aimed at bringing environment-friendly fuel to eastern India, has faced a nine-month delay, now expected to be completed by March 2025. Under GAIL's supervision, the 3,306-kilometre pipeline is crucial for integrating the eastern region into India's gas-based economy.

The Rs 12,940-crore 'Urja Ganga' gas pipeline, set to be India's most ambitious project in delivering environmentally friendly fuel to eastern regions, has encountered a nine-month setback. Initially slated for completion by June 2024, state-owned GAIL (India) Ltd now targets March 2025 due to delays in 'Right of Use' (RoU) availability.

The project’s 3,306-kilometre stretch from Jagdishpur to Haldia and Bokaro to Dhamra, dubbed the Pradhan Mantri Urja Ganga pipeline, has largely been constructed with gas already flowing in most cities along its route. However, the completion date for the 240-km Dhamra-Haldia portion has also been moved to March 2025.

With substantial governmental support, including 40% viability gap funding for the JHBDPL and 60% for the Barauni-Guwahati segment, the pipeline is integral to supplying gas to the eastern and northeastern states. Once finished, this venture will play a pivotal role in transitioning these regions to a gas-based economy, facilitated by significant tariff reductions under the newly notified unified tariff regulations.