City Gas Distribution company Mahangar Gas (MGL) is looking at a significant expansion in its CNG infrastructure while also looking to acquire ReNew’s existing renewable energy assets to develop its green portfolio, the company’s managing director Ashu Shinghal told FE.
Additionally, the company plans to spend Rs 1,000 crore in the upcoming fiscal year 2025-26 as capex compared with Rs 800 crore in the current fiscal year.
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“We have been doing 25 CNG stations every year. This year, we expect to set up 80 stations. Right now we are selling CNG at 48% discount to petrol and 18% discount to diesel. People are getting more confident about availability of CNG across the highways and hence CGD entities are also building CNG infrastructure on highways,” Shinghal said, adding that the CNG market is growing pretty fast.
“With ReNew we are also exploring (for green energy). It’s a vast area. We are thinking about existing assets and also thinking of bidding for RTC (round-the-clock) power,” Shinghal said, adding that the company will come out with its net zero targets by next year.
As of 2023, ReNew’s portfolio stood at 13.8 GW, with approximately 8.3 GW already commissioned and 5.5 GW committed to future projects. The company had said earlier that it plans to add 10 GW capacity by FY26. It is not clear which asset/s of the company MGL is looking at or whether ReNew is open to any sale.
On the profitability front, MGL expects to register decent numbers in FY25 but lower than last year’s on the back of higher procurement costs this fiscal. Further, the recent deallocation of domestic gas to the company is said to have some impact on the company’s margins.
“This year, the profit will not be as high as last year because in nine months of FY25 we are at Rs 750 crore. Last year we were at Rs 1,280 crore. So I don’t think we will be able to do that number, but still, it’s a very decent performance as far as the financial numbers are given,” the MD said.
He further added that the more important thing is that the company is growing at a rate of 12% year on year on the volume part.
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