The pipeline segment will connect from Dobhi in Bihar and Durgapur in West Bengal, and also includes a 120km pipeline to Jamshedpur in Jharkhand. The contracts are worth INR600cr ($93m), reported Times of India.
GAIL says that awarding of the contracts marks the finalization of major contracts for phase II of the project.
With the contracts in place, the company anticipates to complete the 2,655km long JHBDPL pipeline project, better known as the Pradhan Mantri Urja Ganga project within project cost and schedule.
The state-owned natural gas transmission company has so far awarded contracts worth over INR6,000cr ($930.6m) covering phase I and II.
GAIL (India) CMD BC Tripathi said: “The project activities of Phase-I is under advanced stage of construction which will supply gas to Varanasi, Gorakhpur, Patna & Barauni.
“Though certain hindrances are being encountered in RoU opening, GAIL is putting all out efforts to overcome the hindrances and complete the Phase-I before the scheduled completion of December 2018.”
The pipeline project, which was launched in October 2016, will be laid through the states of Uttar Pradesh, Bihar, Jharkhand, West Bengal and Odisha.
Its objective is to grow the gas networks in cities across the eastern part of India and steer industrial development through the supply of environmentally clean natural gas to fertilizer, power plants, steel plants, refineries and other industries.
GAIL has revealed that the city gas network laying work has already begun in Varanasi and Bhubaneswar while activities in Patna, Ranchi, Jamshedpur, Cuttack, Kolkata and other cities will commence by next month.
Tripathi added: “GAIL is presently executing 4000 kms of Natural Gas pipeline. The 4000 kms pipe line will cover the states of Uttar Pradesh, Madhya Pradesh, Bihar, Jharkhand, Orissa, West Bengal, Kerala & Karnataka.
“GAIL is making huge investment in pipeline to fulfil Government’s vision of National Gas Grid. The CAPEX of GAIL for the next Financial year is expected over Rs 6000 crs which will be a jump of more than 50% of current Financial year.”
