The agreement, signed by B.C. Tripathi, GAIL’s Director (Marketing), and Manoj Kumar, Director (Industries) in Himachal, has cleared the decks for extending the proposed Dadri-Bawana-Nangal natural gas pipeline to the state. The work will begun in two years, after completion of an assessment on the demand potential and alignment of the pipeline. The 65-kilometre pipeline will require an investment of nearly Rs 3,000 crore, for which GAIL has already mobilised funds, said U.D. Choubey, chairman and MD, GAIL.

Choubey said the availability of natural gas to Himachal would enable the state to meet the additional energy demand of the industry, especially in Baddi, Barotiwala and Nalagarh and cut down vehicular pollution by switching over to CNG-based transport. The domestic consumers will also provided natural gas through a pipeline.

State’s Resident Commissioner Ajay Tyagi termed GAIL’s decision as a significant step to boost industrial development and reduce dependency on other forms of fuels and energy. Manoj Kumar, Director (Industries), said Himachal Pradesh will require at least 500 MW of power to be supplied to the new industrial units and once GAIL lays downs its pipeline, the industry will have surplus energy as a new substitute. In the transport sector, GAIL’s entry into Himachal would help in curbing vehicular pollution, particularly in the cement sector.