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Bihar clears plan to source gas from Rs 75 bn project

Bihar clears plan to source gas from Rs 75 bn project
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In a move that may enable setting up of new industries and power plants, Bihar government cleared a plan to source natural gas from the proposed Jagdishpur-Haldia gas pipeline.

The state cabinet approved the plan to sign a Memorandum of Understanding (MoU) with Gas Authority of India (GAIL) for sourcing gas from the pipeline, which will pass through four districts of Bihar: Gaya, Aurangabad, Rohtas and Kaimur.

It may be noted that GAIL may begin work on the Rs 7,596-crore gas pipeline project, which was approved in 2007, soon. The groundwork on it is yet to begin.

Specifically, a branch pipeline would pass through 10 districts of Bihar, covering a distance of 621 km. The branch pipeline would pass through Patna, Nalanda, Sheikhpura, Lakhisarai and Begusarai districts, among others. The distribution pipeline could also cover some more districts of Bihar.

Operation in the fertilizer factory at Barauni could be revived if the state government sources gas from the pipeline. Besides, it would enable development of the much awaited petrochemical hub at Barauni. It will ensure adequate supply of fuel to those investors who want to set up gas-based power plants.

Moreover, the pipeline will also ensure supply of eco-friendly fuel for natural gas-run vehicles in the state.

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