In a major boost for the national gas economy, the much delayed 444 km long Kochi-Mangalore natural gas pipeline's construction has been completed by the Gas Authority of India Limited (GAIL), reports Economic Times.
Launched in 2009, the project was initially expected to be completed and commissioned by 2014 for an estimated cost of Rs 2,915 crore. However, the project kept facing political and public opposition on safety and commercial grounds, not just pushing the deadline to 2020, but also nearly doubling the project cost to Rs 5,750 crore.
The first phase of the pipeline had been commissioned in 2013 in Kochi metropolitan area, following which Adani Gas gad began supplying gas to industrial and domestic users in February 2016. Presently, the pipeline supplies 3.8 million cubic metres of gas every day in Kochi.
Meanwhile, the completion of the pipeline till Mangalore holds much significance as Mangalore also has the potential of 2.5 million cubic metres gas consumption per day. With its commissioning, the gas demand in Kerala will touch 80-90 million cubic metres per annum from present 60 million cubic metres per annum.
Furthermore, the project also holds much value for the state government. While supplying gas to Kochi alone earns the state government more than Rs 340 crore annually in form of taxes. The same is expected to go up as high as Rs 1,000 crore annually after commissioning of the new line.
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