Mumbai-based Mahanagar Gas Limited (MGL) is the sole authorised distributor of CNG and PNG in Mumbai adjoining areas and Raigad as well. Now Mahanagar Gas if you look at the numbers it has 313 compressed natural gas (CNG), stations, 2.1 7 million domestic gas connections, around 4,500 industrial customers and a pipeline of 6,535 kilometres. Coming did a capex of Rs 580 crore rupees in FY23 and they plan to look at the same amount in the next two financial years as well for its growth plans.

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To achieve sustained growth, Mahanagar Gas is actively pursuing both organic and inorganic expansion opportunities.

Ashu Shinghal, MD of the company acknowledged that organic growth prospects were limited for the company, prompting them to explore acquisitions.

“See the growth is a function of demand picking up and also the affordability of customers on whatever options we are giving it to them. So organic growth was limited because with the 11th round coming up there was hardly any new good city which is coming on the block. So, the other way to expand is to go in organic way which we were scouting several opportunities.”

One notable acquisition is the recent partnership with Unison Enviro, which perfectly aligns with Mahanagar Gas's valuation and expansion plans.

“Fortunately for us Unison Enviro was it right fit in terms of potential to grow as well as the valuation and the contiguous nature of our geographies as well as the MWP, the minimum work program which they have committed is more sensible and reasonable. So, we went in for that and it went into our place now the SPA is signed, which is called Sale Purchase Agreement.”

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Shinghal expressed optimism, expecting this addition to reach 1 mmscmd within the next 7-8 years.

However, Mahanagar Gas isn't limiting its focus to traditional natural gas alone. Shinghal revealed that the company is actively exploring the emerging sector of green hydrogen, which has gained significant attention due to its environmental benefits.

Mahanagar Gas is currently in talks with several parties to establish a memorandum of understanding (MoU) for green hydrogen initiatives. Shinghal envisions a future where 2-3 percent of green hydrogen will be blended into compressed natural gas offering a cleaner and more sustainable fuel option.

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(Edited by : Sangam Singh)

First Published:Jun 5, 2023 5:21 PM IST