The Ministry of Petroleum and Natural Gas is contemplating viability gap funding to achieve the target of doubling of gas pipelines to 30,000 km.
Finance Minister Arun Jaitley, in his maiden budget, had announced the doubling of pipeline network in the next few years. However, the plan has not been executed as the developers have raised questions about its viability in the absence of gas supply source and customers.
To overcome this issue, a viability gap funding is being considered to support the government’s proposal to expand the pipeline network.
India has over 15,000 km of gas pipelines and another 11,000 km has been authorised by the Petroleum and Natural Gas Regulatory Board. For the remaining 4,000 km, a PPP model is being considered.