CGD Companies: Scripting a Survival Guide

NEW DELHI - Aug. 2, 2025 - PRLog -- Mahanagar Gas Ltd. (MGL), one of India's oldest city gas distribution (CGD) companies, is undergoing a quiet transformation. While FY2024–25 results highlighted strong earnings with ₹1,045 crore in profits and a robust 18.94% RoNW, MGL is no longer betting its future solely on gas. Instead, the company is positioning itself as a clean energy platform that blends gas, electric mobility, biogas, and green hydrogen.

This strategic pivot, analyzed by IndianPetroPlus.com, comes at a critical juncture: shrinking APM gas allocation, rising LNG costs, EV policy shifts, and looming third-party pipeline access challenges threaten the traditional CGD model.

Diversification Moves That Matter:

LNG Trucking:

• JV with Baidyanath LNG; stations launched in Aurangabad and Seoni
• Target: 25 LNG stations by 2030
• Competes directly with diesel in long-haul freight

EV Strategy:

• 24.5% stake in 3EV Industries (cargo/passenger 3-wheelers)
• Revenue up 199% YoY; losses narrowing
• Strategic hedge against falling CNG 3W demand

Battery Gigafactory Investment:

• ₹350 crore JV with International Battery Company
• Phase-1 capacity of 500 MWh (expandable to 5 GWh) by FY27

Compressed Biogas (CBG):

• MoU with BMC for 1,000 TPD Deonar MSW-to-CBG project
• Aligns with SATAT's 5% blending mandate

Hydrogen Pilots:

• Green hydrogen demo projects for FCEV buses and potential PNG blending

Core Infra Still Growing:

Despite diversification, MGL's gas operations remain strong:

• 40 new CNG stations (Total: 385)
• 3.4 lakh new PNG domestic connections
• 491 km of new pipelines laid
• Volumes in UEPL GA up 41% YoY

The company has committed ₹1,023 crore in FY25 capex—ensuring infrastructure readiness for both gas and green fuels.

"This isn't just about survival," says the editorial board at IndianPetroPlus.com.
"MGL is executing a blueprint for what CGD 2.0 could look like — a fuel-agnostic, infrastructure-driven energy platform backed by urban density and regulatory alignment."

As more city gas firms like IGL and ATGL begin to face the same policy headwinds, MGL's early shift into renewables, electric mobility, and alternate fuels may offer a competitive edge and an industry-leading playbook.

🔗 Read the full strategic analysis at:
👉 https://www.indianpetroplus.com