USTDA AWARDS GRANT FOR NATIONAL GAS GRID PROJECT IN INDIA

New Delhi, India (September 1, 2004) – Earlier today, the U.S. Trade and Development Agency (USTDA) awarded a $690,000 grant to GAIL (India) Ltd. to partially fund a feasibility study for the National Gas Grid project in India.  The Honorable David C. Mulford, U.S. Ambassador to India, on behalf of the U.S. Government and Mr. Proshanto Banerjee, Chairman of GAIL (India) Ltd., signed an agreement conferring the grant.

GAIL (India) Limited, a public sector enterprise under India’s Ministry of Petroleum and Natural Gas, is undertaking this major energy infrastructure program to build a natural gas transmission pipeline network that will eventually reach all major energy consuming areas in India.  The Ministry has prioritized this project to promote the increased use of natural gas as a preferred fuel.  As India’s energy demand grows, expanded access to, and utilization of, natural gas is expected to maintain sufficient energy supplies and avoid potential shortages.

The Feasibility Study is divided into six phases that will evaluate technologies and practices for the construction, operation and management of a proposed $4.3 billion natural gas transmission pipeline network.  In total, the national pipeline grid will involve constructing approximately 7,900 km of line in addition to a number of compressor stations, metering stations, gas storage, control systems and communications. 

The U.S. Trade and Development Agency advances economic development and U.S. commercial interests in developing and middle-income countries.  The agency funds various forms of technical assistance, feasibility studies, training, orientation visits and business workshops that support the development of a modern infrastructure and a fair and open trading environment.  USTDA’s strategic use of foreign assistance funds to support sound investment policy and decision-making in host countries creates an enabling environment for trade, investment and sustainable economic development.  In carrying out its mission, USTDA gives emphasis to economic sectors that may benefit from U.S. exports of goods and services.