Guwahati: The Northeast Gas Grid project, led by Indradhanush Gas Grid Limited (IGGL), a Joint Venture of IOCL, GAIL, ONGC, OIL & NRL, is advancing as a strategic infrastructure initiative, connecting the region to India’s National Gas Grid. The project aligns with India’s Hydrocarbon Vision 2030 for the North East to increase natural gas usage from 7% to 15%, supporting the nation’s transition to cleaner energy by connecting the capitals and major demand centres of the eight North Eastern states as well the regional gas sources to the National Gas Grid.
Subrata Das, Chief Executive Officer of IGGL, informed Pankhi Sarma of Business North East (BNE) that the grid will link the capitals and major demand centres of the eight North Eastern states, improving energy accessibility and supporting industrial growth.
“This grid will ensure Northeast states and regional gas sources are connected to the National Gas Grid, strengthening local industries as well as CGD networks and promoting energy security,” Das stated.
The project, with a budget of Rs 9,265 crore, is a collaborative venture with 60% funding from the Government of India and financial participation from IGGL stakeholders and the priority Guwahati-Numaligarh pipeline under Phase-I is expected to be commissioned by December 2024.
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Subrata Das, Chief Executive Officer, IGGL, with journalist Pankhi Sarma
In addition to developing a gas-based economy in Northeast India, Das noted that the initiative will mitigate environmental impacts by reducing gas flaring and ensure a consistent gas supply for energy-intensive industries such as, refineries and petrochemical plants in the Northeast. Here are the excerpts from the interview:
Interview Q&A:
Business North East (BNE): Could you provide an overview of the North East Gas Grid project and its significance?
Subrata Das (SD): Certainly. The Northeast Gas Grid Project holds profound national significance, with implications that transcend regional boundaries. In an era where clean energy demand is surging, natural gas has emerged as a cornerstone for advancing the shift toward sustainable energy solutions. This strategic initiative focuses on linking the capital cities and major demand centres of Northeast India to the National Gas Grid, reflecting the objectives outlined in India's Hydrocarbon Vision 2030. This vision seeks to elevate the region’s natural gas usage from 7% to 15%, fostering a gas-based economic growth and providing a reliable, accessible supply of clean energy to every major town and city in the Northeast. Spearheaded by Indradhanush Gas Grid Limited (IGGL)—a collaborative venture supported by equity partnerships from IOCL, GAIL, ONGC, Oil India, and NRL, each holding a 20% stake—this project benefits from both the financial and technical expertise of these industry leaders. Together, they are creating a robust foundation for sustainable energy access and long-term economic advancement in the Northeast.
BNE: Could you give an update on the project’s progress?
SD: The project is divided into three phases based on requirement of statutory clearance, route terrain, linkage with Highway corridor widening works, difficulty in work execution etc.. Commissioing of the Phase I of 553 Km, connecting Guwahati to Numaligarh, Gohpur to Itanagar, Dergaon to Dimapur, and ONGC Feeder Lines is commencing by December 2024. Phase II of 723 Km, extending from Guwahati to Silchar, Shillong CGD, Silchar to Panisagar, Banaskandu feeder line, Panisagar to Agartala, Panisagar to Aizawl, Agartala to Tulamura, is slated for March 2026, while Phase III of 394 Km, extending from Dimapur to Imphal via Kohima and from Siliguri to Gangtok, aims for completion by March 2027. Currently, the project has achieved a commendable physical progress of 83.83%. However, significant challenges have hindered advancement, including difficult terrain, NHIDCL highway expansion activities, landslides in the Gangtok region of Sikkim, regulatory clearances, and law and order constraints in Manipur.
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BNE: What specific challenges have you encountered, especially related to the terrain?
SD: Terrain poses our biggest challenge, particularly in hilly areas such as Meghalaya, Tripura, Mizoram and Sikkim. We’re using advanced techniques like Horizontal Directional Drilling (HDD) for river crossings, enabling safe pipeline placement under major rivers like the Brahmaputra. Additionally, maintenance is prioritized with leak detection systems and SCADA for real-time monitoring, ensuring both safety and operational resilience.
BNE: Could you share insights into the current phase and the role of government support?
SD: This project receives 60% funding from the Government of India, which has been crucial in addressing challenges such as land acquisition. The government, along with state authorities, including Mr. Sazzad Alam, the Nodal Officer of NEGG in Assam, has facilitated quick resolutions, allowing us to make significant headway. As a result, Phase 1 is set to commission in Assam by December 2024.
Final statutory clearances required for commissioning are currently awaited, including approvals from the Petroleum and Explosives Safety Organization (PESO), which will assess and validate system safety prior to granting the essential operational authorizations. In Phase II, we’re addressing bottlenecks related to land acquisition for Sectionalizing Valve stations, Receiving Terminals, Despatch Terminals, Intermediate Pigging stations and right-of-way issues due to highway widening works, with a projected completion by March 2026.
Looking ahead, we plan to connect the largest gas source of OIL in the Northeast, Duliajan by March 2027, which will significantly boost our capacity to over 7 MMSCMD, up from the current 4.75 MMSCMD.
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BNE: Could you elaborate on worker safety measures and pipeline durability?
SD: Safety is paramount. Each day begins with safety briefings for our workers on proper PPE use and other safety measures. Dedicated HSE Officers (Health, Safety, and Environment Officer)safety officers monitor site operations, ensuring protocol compliance and conducting drills for emergency preparedness.
In the pipeline design process, comprehensive safety measures have been incorporated to address seismic activity, landslides, and adverse weather conditions, with particular attention to high-risk zones. For areas vulnerable to earthquakes and landslides, specialized precautions have been implemented, such as strategic routing along less exposed hillsides to mitigate potential hazards. These designs adhere to stringent codes and standards, which provides guidelines for material selection, construction practices, and testing protocols. Additional measures, such as geotechnical analysis and ongoing monitoring, help ensure pipeline resilience and safety under varying environmental stresses.
BNE: What is the total investment in the project, and how is it funded?
SD: The project’s total cost is around Rs 9,265 crore. The Government of India funds 60% of this through the Viability Gap Funding (VGF), totalling Rs 5,559 crore, while the remaining 40% is covered by the stakeholders and loan. Of the stakeholder share, 70% is sourced from loans and 30% from equity contributions.
To date, around Rs 5,4790 crore has been expended on the execution phase, covering major construction and installation costs.
BNE: Once operational, how will you manage the operational costs and funding?
SD: Initially, operational costs will be shared by our five shareholders, with projected expenditures reaching Rs 41 this year. Once the pipeline is fully operational, revenue generated from natural gas sales will fund maintenance costs independently, reducing shareholder reliance and allowing profits to be reinvested for further growth.
BNE: What impact will the NorthEast Gas Grid project have on the Northeast’s economy and industries?
SD: The Northeast Gas Grid project is poised to transform the region's economy and industrial landscape by ensuring a stable supply of natural gas, vital for energy-intensive sectors like refineries, petrochemicals, and manufacturing. For example, the capacity expansion of Numaligarh Refinery will drive an increased demand for natural gas. Additionally, industries such as BCPL and HRA, which are engaged in polymer production, along with CGD networks, will benefit from a reliable supply of natural gas for suppling PNG in domestic households and CNG for vehicles. This project will catalyse industrial growth, lower energy costs, and support job creation, fostering economic resilience. By connecting the region to the national gas network, the project also aligns with India’s Hydrocarbon Vision 2030, which seeks to increase natural gas usage, expand access to cleaner energy, and enable sustainable, gas-based economic development across the Northeast.
IGGL’s role is pivotal for Northeast India’s energy future. This project not only provides cleaner fuel but also generates employment opportunities and contributes to environmental conservation through advanced technology and efficient project execution.
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