Gail India has placed orders for laying work of a 345km section of the Jagadishpur-Haldia-Bokaro-Dhamra Natural Gas Pipeline (JHBDPL), which will involve an investment of Rs3.06bn ($45.8m).

This section of the pipeline under phase-IB will run from Phulpur to Dobhi.

Gail said that two sections of the Rs129.4bn ($1.9bn) pipeline project will be executed simultaneously by JSIW Infrastructure and IL&FS Engineering & Construction.

Laying works are set to start by the end of this year and slated for completion by December 2018.

"Our prime minister has taken a clear and committed stand to move towards a cleaner fuel regime."

Cabinet Committee on Economic Affairs will provide 40% amounting to Rs51.76bn ($775m) over a period of five years for the pipeline project.

India Minister for Petroleum & Natural Gas Dharmendra Pradhan said: “Our prime minister has taken a clear and committed stand to move towards a cleaner fuel regime.

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“It is a delightful moment for us as cleaner and greener energy path has been chosen for Eastern India that shall be affordably accessible to the masses.”

The first phase of the project will involve Rs32bn ($479m) and cover 755km to cover Phulpur, Mani, Gorakhpur, Varanasi, Dobhi, Silao, Patna and Barauni spread across various sections.

Construction of the pipeline is already underway along Gaya-Barauni–Patna section.

Scheduled for completion by December 2020, the 2,539km-long JHBDPL will connect major cities and towns en-route for commencing piped natural gas to homes across the Indian states Uttar Pradesh, Bihar, Jharkhand, West Bengal and Odisha. 

The pipeline will also supply feed gas to anchor fertiliser units at Gorakhpur, Barauni and Sindri.

The line pipes supplies against orders are expected to start from Jindal Saw, Man Industries, Essar Steel India and Zhongyou BSS, China.