The union cabinet has given its approval for the formation of a special purpose vehicle (SPV) for the Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline project and also permitted public sector natural gas major GAIL India to join the SPV. The four countries involved in the project signed an Inter-Governmental Agreement (IGA) along with a Gas Pipeline Framework Agreement (GPFA).
The projected 1,080-km long worth $7.6-billion TAPI project will transport gas from Turkeminstan (144 km in Turkmenistan, 735 km in Afghanistan and 800 km in Pakistan) will have a capacity to transport 90 mmscmd of gas in which 38 mmscmd each are for India and Pakistan and the remaining 14 mmscmd for Afghanistan. However, this 14 mmscmd is now available to India and Pakistan as the Afghanistan has said that it does not require the gas at present, but may approach Turkmenistan in future.
As per the union cabinet statement, TAPl is required to have an initial contribution of $ 20 million that is $5 million from an identified entity from each of the four participating countries, while India’s Navratna company, GAIL is empowered to make investment at this project from country side.
In the Inter-Governmental Agreement (IGA) and Gas Pipeline Framework Agreement (GPFA), a suitable provision for security and safety of the pipeline has been made. The SPV would also take up the feasibility study and design work of the pipeline to meet the agreed timelines, as well as search for a consortium lead. Further, need of an active interest in the project by all the partner countries at this stage has been asked which would sustain the credibility of the project and generate interest in the international market and would also pave the way for selection of an appropriate consortium leader in the future.
MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.
To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.
MoneyWorks4Me ensures this through: