North-East gas grid to get Rs 5,500 crore viability gap funding
NEW DELHI: The government is likely to provide Rs 5,500 crore viability gap funding (VGF) to North-East gas grid.
The Prime Minister’s Office has agreed to the oil ministry’s proposal of extending 60% budgetary support to the Rs 9,200-crore North-East gas grid project, people familiar with the matter said, adding that the proposal would soon be sent to the Cabinet.
The Modi government wants to turn India into a gasbased economy and is encouraging massive investments in gas production, transportation and import terminals to have increased countrywide access to the fossil fuel. The government plans to raise the share of natural gas in country’s primary energy mix to 15% by 2030 from 6% now.
