PNGRB to issue authorization, UT admin directed to levy 0% VAT on natural gas
By: Ibni Maqbool
Srinagar: The Government of India has said the Gas Authority of India Limited (GAIL) has submitted a detailed feasibility report (DFR) of a gas pipeline project to Jammu & Kashmir.
In a document titled implementation of budget announcement of 2021-22, the Union Finance Ministry informed the Parliament that a directive has been issued to the Petroleum and Natural Gas Regulatory Board (PNGRB) to issue authorization for Gurdaspur – Srinagar pipeline to GAIL.
In the 2021-22 budget, Finance Minister Nirmala Sitharaman had announced in the Parliament that a gas pipeline project A gas pipeline project will be taken up in the Union Territory of Jammu & Kashmir. J&K’s LG Manoj Sinha had then hailed the announcement of the gas pipeline project to J&K.
The Centre today also informed the Parliament that the Ministry of Petroleum and Natural Gas (MoPNG) has requested the government of J&K to levy 0% VAT on natural gas in the UT of J&K.
“Public Investment Board (PIB) and Expenditure Finance Committee (EFC) approval for Viability Gap Funding (VGF) grant is under process,” the documents state.
It is worthwhile to mention that a gas pipeline project on almost similar lines was also announced by the then Omar Abdullah-led National Conference and Congress government in 2011. But it couldn’t take off as the company, which was awarded the contract, backed off due to the difficult terrain and cost escalation.
