Assam: 81% Of Works Of North East Gas Grid Completed

GUWAHATI: Indradhanush Gas Grid Ltd. (IGGL) has completed 81.70 percent of the works of North East Gas Grid (NEGG) as of June 2024. IGGL has spent Rs 5361.41 crore on this ambitious project as of March 31, 2024.

As per the plan on the vision document, the North East Gas Grid Project connects eight north-eastern states: Assam, Arunachal Pradesh, Meghalaya, Manipur, Mizoram, Nagaland, Tripura, and Sikkim, to the National Gas Grid through the Barauni-Guwahati Gas Pipeline.

From Guwahati, the pipeline extends to Numaligarh, Dimapur, Kohima, and Imphal in one direction; Shillong, Silchar, Aizawl, and Agartala in the second direction; and to Itanagar in the third direction. Gangtok gets connected to Siliguri from the gas pipeline coming from Barauni to Guwahati.

The implementation of the NEGG project is running as per schedule. The recently published annual report, 2023-24, of IGGL has reflected that up to March 2024, NEGG achieved a physical progress of 80.40 percent out of the scheduled 83.27 percent. Up to June this year, the physical progress of this project was 81.70 percent out of the scheduled 84.69 percent. 

According to the annual report, 2023-24 of IGGL, as of August 10, 2018, a pivotal milestone was achieved in bolstering the Northeast’s gas economy, aligned with the Hydrocarbon Vision 2030 for the region.

This was marked by the establishment of Indradhanush Gas Grid Limited (IGGL), a joint venture between five public sector titans—ONGC, OIL, IOCL, GAIL, and NRL—each contributing equally to the venture. The foremost goal was to create the North-East Gas Grid (NEGG), a 1656-km-long natural gas pipeline network with a capacity of 4.75 MMSCMD aimed at interconnecting the eight north-eastern states.

The NEGG has achieved a physical progress of 80.40% out of the scheduled 83.27% up to March 2024 and a physical progress of 81.70% out of the scheduled 84.69% up to June 2024, signifying a significant step towards ensuring a steady and sustainable natural gas supply to the northeastern states.

Amidst the NEGG project’s various phases, remarkable progress and strong momentum are evident as dedicated teams work diligently to adhere to project timelines.

Despite encountering multiple challenges, including Right of Use (ROU) and Right of Way (RoW) issues, delays in obtaining necessary statutory approvals and permissions, complexities related to permanent land acquisition, and unforeseen natural calamities such as floods and social unrest, notable achievements are being made in various sections of the project.

A cumulative 967 km of welding and 847 km of lowering have been completed up to March 2024, and a cumulative 1003 km of welding and 886 km of lowering have been completed up to June 2024.

A noteworthy milestone, according to the report, is the completion of 516 km of hydrotest up to March 2024 and the completion of 523 km of hydrotest up to June 2024.

Another remarkable feat, according to the annual report, is the completion of horizontal directional drilling (HDD) for the eight major rivers, including the mighty Brahmaputra. These river crossings pose unique engineering challenges, but IGGL’s commitment to employing advanced technologies and expertise is evident in their progress.

IGGL is implementing the prestigious NEGG project, an approximately 1656-km natural gas pipeline grid spanning across all eight north-eastern states, at an estimated cost of Rs 9,265 crore. The pipeline will traverse challenging terrains of the Northeast and would connect Guwahati to capital cities/major cities of the region like Itanagar, Dimapur, Kohima, Imphal, Aizawl, Agartala, Shillong, Silchar, Gangtok, and Numaligarh.

The Cabinet Committee on Economic Affairs (CCEA) of the central government has already approved the viability gap funding/capital grant of Rs 5,559 crore (60% of the estimated total cost of the project, i.e., Rs 9,265 crore) for the NEGG project.

Financially, the company has made significant progress in the fiscal year 2023-24. The total capital expenditure (Capex) for the financial year 2023-24 amounted to Rs 1135.24 crore, the cumulative Capex up to March 31, 2024 being Rs 5361.41 crore.

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