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Uniform tariff comes under fire from buyers-II: It is an attempt to make the JHBD pipeline viable, says critics
Oct 03:
The government, along with GAIL, seems to be trying very hard to make the Jagdishpur-Haldia-Bokaro-Dhamra Pipeline (JHBD) a viable proposition.
8To begin with, the pipeline has elicited a viability gap funding of a massive Rs 5176 crore.
8A specific directive has also been given to the PNGRB under Section 42 of the PNGRB Act -- which allows the government to issue directives to the regulator -- not to allow any duplicate or dedicated pipelines to be built to the Dhamra LNG terminal, which will be a source of gas for the JHBD pipeline.
8In the normal course, such a directive is not needed as there is an already existent due process inside the PNGRB to avoid duplication of pipelines.
8One of the reasons why the JHBP pipeline needs to be built -- over and above the fact that it marches through some of the most populous parts of India, thereby providing impetus to building city gas distribution centers and reviving defunct fertilizer plants -- is also to make the Adani group promoted LNG terminal viable. IOC and GAIL have also been brought in as stakeholders -- with 39% and 11% shareholding in the Dhamra LNG terminal while Adani will own 50%.
8Without the JHBD pipeline, a terminal cannot come up in Dhamra.
Click on Reports for more
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8To begin with, the pipeline has elicited a viability gap funding of a massive Rs 5176 crore.
8A specific directive has also been given to the PNGRB under Section 42 of the PNGRB Act -- which allows the government to issue directives to the regulator -- not to allow any duplicate or dedicated pipelines to be built to the Dhamra LNG terminal, which will be a source of gas for the JHBD pipeline.
8In the normal course, such a directive is not needed as there is an already existent due process inside the PNGRB to avoid duplication of pipelines.
8One of the reasons why the JHBP pipeline needs to be built -- over and above the fact that it marches through some of the most populous parts of India, thereby providing impetus to building city gas distribution centers and reviving defunct fertilizer plants -- is also to make the Adani group promoted LNG terminal viable. IOC and GAIL have also been brought in as stakeholders -- with 39% and 11% shareholding in the Dhamra LNG terminal while Adani will own 50%.
8Without the JHBD pipeline, a terminal cannot come up in Dhamra.
Click on Reports for more
