MGL's Green Leap: ₹1,500 Crore Push into EVs and Biogas

Mahanagar Gas Limited (MGL), Mumbai’s leading natural gas distributor, has announced a ₹1,500 crore diversification plan to expand into clean energy sectors and reduce dependence on compressed natural gas (CNG), which currently contributes nearly 70% of its revenue.

As part of the strategy, MGL will invest in two major initiatives: electric vehicle (EV) battery manufacturing and compressed biogas (CBG) production.

MGL has formed a joint venture with US-based International Battery Company (IBC) to establish a giga factory in Karnataka. The facility will initially manufacture prismatic NMC lithium-ion battery cells with a 1 GWh capacity, scalable up to 5 GWh. IBC holds a 56% stake, while MGL holds 44%, with the battery project valued at ₹825 crore. Construction is set to begin later this quarter.

Separately, MGL has signed an agreement with the Brihanmumbai Municipal Corporation (BMC) to set up a 1,000-tonne-per-day compressed biogas plant in Maharashtra. With an investment of ₹500 crore, the plant will convert food and vegetable waste supplied by BMC into clean fuel.

News by Rahul Yelligetti.