Mahanagar Gas Limited to infuse a part of INR 950 crore for setting up a Compressed Biogas plant with Brihanmumbai Municipal Corporation and also establish liquefied natural gas (LNG) stations in the joint venture company with Baidyanath LNG.
Apr 1, 2024
Leading Indian natural gas distribution company Mahanagar Gas Limited is expecting to spend about INR 950 crore in FY25, including capital expenditure planned for the Unison Enviro Private Limited (UEPL), a wholly-owned subsidiary of MGL.
As per Mr. Ashu Shinghal, Managing Director and Chief Executive Officer of MGL, the development will allow the city gas distribution (CGD) company to expand to newer geographical areas in Maharashtra and Karnataka.
MGL further expected to spend on enhancing infrastructure by setting up around 50 compressed natural gas (CNG) pumps in FY25, apart from clean energy initiatives.
Speaking to a leading business portal, Mr. Singhal revealed that MGL was planning to set up a CBG (Compressed Biogas) plant with BMC (Brihanmumbai Municipal Corporation). Some of the capex will also be used for the establishment of a joint venture company with Baidyanath LNG for LNG (liquefied natural gas) stations.
He said the Mahanagar Gas Limited has acquired some equity in an electric vehicle company, where it was using some of its capex, apart from spending on infrastructure. The natural gas company spent Rs 800 crore in FY24 and added around 50 pumps.
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The FY25 capex, including Rs 150 crore for UEPL, will be funded through internal accruals and generation, added Mr. Shinghal.
