Indradhanush Gas Grid Clocks Rs 632 Crore Capex in FY26, Project Progress Reaches 88.6%

Indradhanush Gas Grid Records Rs 632 Crore Capex

Indradhanush Gas Grid Limited has reported capital expenditure of ₹632 crore during FY2025-26, reflecting continued investment in the development of the Northeast Gas Grid.

The company is implementing the North East Natural Gas Pipeline Grid, a major infrastructure initiative designed to improve the availability and distribution of natural gas across the northeastern region.

According to IGGL's project progress information, the physical progress of the project reached 88.6% during FY2025-26.

Northeast Gas Grid Project Nears Completion

The 88.6% physical progress indicates that the project has moved substantially closer to completion.

The Northeast Gas Grid is being developed to create a dedicated natural gas transportation network across the region. The project is expected to improve access to natural gas for households, industries, transport and other consumers while supporting the development of a gas-based economy in the Northeast.

The network is planned to connect the northeastern states with the National Gas Grid through the Barauni-Guwahati gas pipeline.

Project Covers All Eight Northeastern States

The Northeast Gas Grid is designed to connect Assam, Arunachal Pradesh, Meghalaya, Manipur, Mizoram, Nagaland, Sikkim and Tripura.

The original project envisages a pipeline network of approximately 1,656 km. It will extend from Guwahati towards major cities and consumption centres across the region, including Numaligarh, Dimapur, Kohima, Imphal, Shillong, Silchar, Aizawl, Agartala and Itanagar.

The network is therefore expected to play a major role in improving energy infrastructure across the Northeast.

Government Support for Northeast Gas Grid

The Union government has provided substantial financial support for the project.

In January 2020, the Cabinet Committee on Economic Affairs approved capital grant/viability gap funding equivalent to 60% of the estimated project cost, capped at ₹5,559 crore. At the time, the estimated cost of the 1,656-km project was ₹9,265 crore.

The funding was intended to support the development of the gas pipeline network and make the large-scale infrastructure project financially viable.

IGGL Joint Venture Behind the Project

Indradhanush Gas Grid Limited was incorporated in 2018 to implement the Northeast Gas Grid project under the broader objectives of the Hydrocarbon Vision 2030 for North-East India.

IGGL is a joint venture promoted by Indian Oil Corporation Limited, ONGC, GAIL, Oil India Limited and Numaligarh Refinery Limited.

The participation of major public-sector energy companies brings together expertise in gas production, transmission, refining and energy infrastructure.

Boost to Natural Gas Availability

The project is expected to improve the availability of natural gas in the northeastern states.

A stronger pipeline network can help supply natural gas to industrial consumers, commercial establishments, transport networks and households. Increased access to cleaner-burning natural gas could also support efforts to diversify the region's energy mix.

The government has previously identified the Northeast's hydrocarbon potential and better access to clean fuel as important components of regional economic development.

Importance for Industrial Development

Reliable gas infrastructure can provide a major boost to industries that depend on natural gas as an energy source or feedstock.

The Northeast has significant potential in sectors such as fertilisers, petrochemicals, manufacturing and city gas distribution. A connected gas network could help industries access a more reliable energy supply and encourage further investment in the region.

The pipeline network may also support the emergence of new gas-based industries along its route.

Strengthening India's Gas-Based Economy

The Northeast Gas Grid forms part of India's broader strategy to expand natural gas infrastructure and increase the share of gas in the country's energy mix.

By connecting the northeastern states to the National Gas Grid, the project can help integrate the region into India's wider gas transportation network.

The initiative also aligns with the government's long-term objective of improving nationwide access to natural gas and developing a more integrated energy market.

What 88.6% Progress Means

Reaching 88.6% physical progress represents an important milestone for IGGL.

With most of the project already completed, attention will increasingly shift towards completing the remaining infrastructure, commissioning sections of the network and ensuring operational connectivity across the targeted states.

The pace of completion will be important for translating the project's infrastructure investment into actual economic and energy benefits for the Northeast.

Conclusion

Indradhanush Gas Grid Limited's ₹632 crore capital expenditure in FY2025-26 and 88.6% physical progress mark significant milestones in the development of the Northeast Gas Grid.

The 1,656-km network is designed to connect all eight northeastern states and integrate them with India's National Gas Grid.

As the project moves closer to completion, the gas pipeline network is expected to strengthen energy connectivity, support industrial development and improve access to natural gas across one of India's strategically important regions.