Mahanagar Gas forays into renewable energy

Mahanagar Gas Ltd. (MGL), a city gas distribution (CGD) company said it has signed a Share Subscription Agreement (SSA) and Shareholding Agreement (SHA) with Fourth Partner Energy’s FPEL Reliant Energy Private Ltd. and its holding company FPEL Saur Vidyut Private Ltd. on to acquire a 26% stake in FPEL Reliant for ₹3.89 crore.

The investment will support the setting up of a solar power plant in Maharashtra and this makes MGL’s foray into solar energy.

The power generated from the power plant will be utilised for consumption at CNG stations across the State and will help the company move towards cleaner energy sources while optimising energy costs, MGL said. 

Ashu Shinghal, Managing Director, MGL said, “We are continuously exploring opportunities to integrate cleaner and more sustainable energy solutions into its operations. Our foray into solar energy is a step towards adopting cleaner energy sources for our CNG station network while optimising energy costs and meeting regulatory requirements.”

“As we continue to expand our footprint within the state of Maharashtra and beyond, incorporating renewable energy solutions will remain an important part of our long-term growth strategy,” he added.

The acquisition will be completed through a cash investment and is expected to be finalised within six months from the execution of the agreements. 

Following completion, FPEL Reliant will become an associate company of MGL.