Mahanagar Gas Ltd (MGL) has been supplying safe, efficient and reliable clean energy to the 20 million plus population of the Mumbai Metropolitan Region (MMR) for the last many years. This is a good contribution by the company to lower the pollution levels in the serviced area and a good step in the country’s progress towards a green industrial future. MGL is a joint venture between GAIL India Ltd and BG Asia Pacific Holdings Singapore. The latter is a subsidiary of BG PLC UK, which is a part of the Royal Dutch Shell Group. MGL is the sole authorised distributor of compressed natural gas (CNG) for vehicles and piped natural gas (PNG) for households. At present, the company is supplying CNG to over 5.7 lakh natural gas vehicles, thereby reducing vehicular emission by about 1,400 tonnes per day. The entire public transport fleet, plus a sizeable number of private vehicles are plying with CNG kits supplied by MGL. On the other hand, MGL supplies PNG to around 1.60 million people in and around the metropolis, resulting in the rise of productivity levels for the populace. The company can boast of having all the resources and competencies required for gas distribution with an enviable track record of 100% reliability in gas supply. A notable example being that even during the devastating floods of Mumbai in 2005, when most of the other utilities failed, MGL gas supply continued uninterrupted. Thanks to the rising demand for PNG and CNG, the company plans to invest around Rs 125 crore in the districts of Uran and Raigarh in Maharashtra to develop the network and simultaneously create huge employment opportunities in the development of infrastructure in the region. MGL’s achievement on the productivity front is also quite impressive, with domestic connections exceeding 9.95 lakh customers through over 200 CNG stations and 2,000 dispensing points. With the launch of CNG fuelled two wheelers, the company can tap the estimated 36 lakh two wheelers running in the state and well placed to tap the huge potential in that space. There are many challenges for the company and the key ones are the creation of infrastructure due to the congestion of the city
Rajiv Kapoor is a share broker, certified mutual fund expert and MDRT insurance agent.