8-Jan-2020: Cabinet approves Capital Grant as Viability Gap Funding to Indradhanush Gas Grid Limited for setting up the North East Natural Gas Pipeline Grid
The Cabinet Committee on Economic Affairs, chaired by Prime Minister Shri Narendra Modi, has given its approval as under:
- The North East Gas Grid project of Indradhanush Gas Grid Limited with viability Gap Funding/ Capital Grant at 60% of the estimated cost of Rs 9265 crore (Including interest during construction). Quantum of VGF would be capped at 60% of estimated project cost and would not be linked with upward capital cost variation.
- MoP&NG shall identify milestones for major activities for this project and link the same for releases of capital grant of the project.
- For effective monitoring of the project implementation, a Committee comprising of officials from Ministry of Petroleum & Natural Gas, Department of Expenditure, Ministry of Development of North East Region, Ministry of Environment, Forest & Climate Change, and Department of Fertilizers, may be formed, which would periodically review the progress in implementation of the project and take steps to smoothen out any issues in execution.
Total length of pipeline is 1656 KM and tentative project cost is Rs 9265 crore. As per the plan, Gas Pipeline Grid would be developed in the eight states of the North-Eastern region i.e. Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim and Tripura.
The Capital Grant will provide natural gas supplies to various types of consumers viz. Industrial, PNG(Domestic), CNG(Transport) etc. and would immensely help in substituting the liquid fuels. The pipeline grid would ensure reliability and uninterrupted natural gas supplies to the consumers which otherwise gets severely affected due to various reasons in this part of the country.
Availability of Natural gas across the region is expected to boost industrial growth without impacting the environment and would offer better quality of life to the people in general due to use of cleaner and green fuel.
Socio-Economic and Environmental Benefits:
- Development of industrial climate in eight states of the north-eastern region i.e. Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim and Tripura.
- Reduction in the usage of kerosene, wood etc. due to increased usage of environment friendly fuel natural gas thereby improving the environment in the region.
- Improvement in the standard of living of peoples living in the region.
- It will boost Exploration & Production activities and connect regional gas sources with pipeline network for early monetisation of natural resources in the region.
- Possibility of installing bottling plants for LPG can be explored for reducing transportation cost. Uninterrupted supply of LPG and other value added products can be ensured in the region which will bring energy security to the people in the area.
Background: To usher in Gas based economy and to increase the share of natural gas in country's primary energy mix, Government is taking focused steps viz. enhancing domestic gas production, expeditious development of gas infrastructure including pipelines, City Gas Distribution (CGD) networks and Re-gasified Liquefied Natural Gas (R-LNG) Terminals as well as development of Gas market by providing open access to gas infrastructure. Indradhanush Gas Grid Limited (IGGL), a joint venture company of five CPSEs (IOCL, ONGC, GAIL, OIL and NRL) has been incorporated on 10.08.2018 to develop and operate Natural gas pipeline grid in North-East region. Petroleum & Natural Gas Regulatory Board (PNGRB) has also issued provisional authorization to I
21-Jul-2018: Five oil PSUs sign JV pact for N-E Natural Gas Pipeline Grid
In a major initiative to connect all the North-East States to the National Gas Grid, five central oil PSUs - IOCL, ONGC, GAIL, OIL, and NRL have signed an agreement for executing the North - East Natural Gas Pipeline Grid. As per the agreement signed in Guwahati last night, a joint venture company will develop, build, operate, and maintain the Natural Gas Pipeline Grid connecting Guwahati to the other major North -Eastern cities and major load centres such as Numaligarh Refinery and integrating it with gas producing fields in the region.
The project will connect the state capitals of all the eight North Eastern states - Assam, Manipur, Meghalaya, Mizoram, Nagaland, Tripura, Sikkim and Arunachal Pradesh with an expenditure of 6000 crore rupees for 1500 Km length gas pipeline in a tentative four years' time schedule. The Project will be implemented in three phases. GGL on 14.09.2018 for the development of North-East Gas pipeline grid.
7-Feb-2019: Revision of guidelines pertaining to development of NER
The Government has approved a central sector scheme of North East Special Infrastructure Development Scheme (NESIDS) with 100% central funding restructuring the block grant of 90:10 under the scheme of Non-lapsable Central Pool of Resources (NLCPR).
While framing the guidelines for NESIDS, the provisions of guidelines of NLCPR, as revised in 2016, were retained which, inter-alia, includes the constitution of State Level Empowered Committee (SLEC) under the chairmanship of Chief Secretary of the States; delegation of power of vetting of projects to the states through SLEC; strengthening of project portal for online submission of documents; emphasizing completion of ongoing projects by releasing more funds against them; putting a cap on value of retention of new project; provisioning of release of only token amount of Rs. 10 lakh at the time of sanction of the project with balance to be released on receipt of award of work; and reducing the number of installments for release of funds from three to two.
This resulted in faster completion of projects and reduction in amount of pending utilization certificates from Rs. 1158.95 crore as on 01-04-2016 to Rs. 247.94 crore as on 31-12-2018, besides decrease in time taken for vetting of DPRs and awarding of work.
19-Dec-2018: Non-Lapsable Central Pool of Resources
The details of funds allocated to the North Eastern States under the scheme of Non-Lapsable Central Pool of Resources (NLCPR) scheme administered by the Ministry in the last three years is as under:-
|
Year |
Budget Estimates |
Revised Estimates |
|
2015-16 |
975.00 |
605.10 |
|
2016-17 |
695.00 |
645.00 |
|
2017-18 |
695.50 |
700.07 |
The entire amount available at the RE stage was utilised.
Under this scheme, the entire funds were released to State Governments on the basis of sanctions for new projects and utilisation certificates, Quarterly Progress Reports etc. in respect of ongoing projects.
The annual allocation to Ministry of DoNER under NLCPR scheme is determined through the normal budgetary process of the Government of India. Earmarked spending by Central Ministries in the North Eastern Region have contributed to improved connectivity and infrastructure. In recent years, the average growth rate of NE states has been relatively higher than the all India average.
Background: The North Eastern Region (NER) comprises of eight States viz. Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim and Tripura. The development concerns of these States are pursued through their respective Five Year and Annual Plans as well as those of the Union Ministries and Central Agencies. In addition, projects of inter-State nature in the Region are funded by the North-Eastern Council (NEC), which has a separate additional budget for the purpose.
The North East has essentially depended on Central funding for development works. All the States in the NER are Special Category States whose Development Plans are centrally financed on the basis of 90% Grant and 10% Loan. Further, the Special Category States are allowed to use up to 20% of the Central Assistance for Non-plan expenditure.
Objectives:
In the conference of Governors and Chief Ministers of the North Eastern States and Sikkim held in January 2000 at Shillong the Prime Minister stated the objectives of the Non-lapsable Central Pool of Resources.
- Government has created a pool of non-lapsable funds for the North-East and Sikkim. This pool, meant for funding development projects in these States, will fill the resource gap in creation of new infrastructure, which is a top priority concern of the Union Government.
- The broad objective of the Non-lapsable Central Pool of Resources scheme is to ensure speedy development of infrastructure in the North Eastern Region by increasing the flow of budgetary financing for new infrastructure projects/schemes in the Region. Both physical and social infrastructure sectors such as Irrigation and Flood Control, Power, Roads and Bridges, Education, Health, Water Supply and Sanitation - are considered for providing support under the Central Pool, with projects in physical infrastructure sector receiving priority.
- Funds from the Central Pool can be released for State sector as well as Central sector projects/schemes. However the funds available under the Central Pool are not meant to supplement the normal Plan programmes either of the State Governments or Union Ministries/ Departments/ Agencies.
15-Nov-2018: NITI Aayog Constitutes Himalayan State Regional Council.
NITI Aayog has constituted the ‘Himalayan State Regional Council’ to ensure sustainable development of the Indian Himalayan region. The Council has been constituted to review and implement identified action points based on the Reports of five Working Groups, which were established along thematic areas to prepare a roadmap for action.
Recognizing the uniqueness of the Himalayas and the challenges for sustainable development, Five Working Groups were constituted by NITI Aayog on June 2, 2017.
These Working Groups were tasked with preparing a roadmap for action across five thematic areas namely,
- Inventory and Revival of Springs in Himalayas for Water Security,
- Sustainable Tourism in Indian Himalayan Region,
- Shifting Cultivation: Towards Transformation Approach,
- Strengthening Skill & Entrepreneurship (E&S) Landscape in Himalayas, and
- Data/Information for Informed Decision Making.
The five thematic reports were released by the NITI Aayog in August, 2018 and framed the action points for the Terms of Reference of the Council constituted.
The Himalayan State Regional Council will be chaired by the Dr VK Saraswat, Member, NITI Aayog and will consist of the Chief Secretaries of the Himalayan States as well as the Secretaries of key Central Ministries, senior officers of NITI Aayog as well as special invitees.
The Himalayan States Regional Council will be the nodal agency for the Sustainable development in the Himalayan Region which consists of the twelve States namely Jammu &Kashmir, Uttarakhand, Himachal Pradesh, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, two districts of Assam namely Dima Hasao and Karbi Anglong and Darjeeling and Kalimpong in West Bengal.
The terms of reference of the Council states that it shall monitor the implementation of action points for Central Ministries, Institutions and 12 Himalayan State Governments in Indian Himalayan Region which include river basin development and regional cooperation, spring mapping and revival across Himalayas in phased manner for water security; develop, implement and monitor tourism sector standards as well as bring policy coherence, strengthen skill & entrepreneurship with focus on identified priority sectors, among other action points.