Mahanagar Gas Limited (MGL), one of India’s leading city gas distribution (CGD) companies, has entered into a strategic investment agreement to strengthen its renewable energy footprint. The company has signed a Share Subscription Agreement (SSA) and Shareholding Agreement (SHA) with FPEL Reliant Energy Private Limited, a subsidiary of Fourth Partner Energy, along with its holding company FPEL Saur Vidyut Private Limited, to acquire a 26% equity stake in FPEL Reliant.
The investment, valued at approximately ₹3.89 crore (INR 389 lakhs), will be directed toward the development of a solar power plant in Maharashtra. The electricity generated from this facility will be used to power MGL’s CNG stations across the state, enabling the company to transition towards cleaner energy sources while also improving operational cost efficiency.
This strategic move aligns with regulatory provisions governing captive power consumption under the Electricity Act, 2003, read along with the Electricity Rules, 2005. The acquisition will be executed through a cash consideration, with completion expected within six months from the date of agreement execution.
Upon completion of the transaction, FPEL Reliant Energy Private Limited will be classified as an associate company of Mahanagar Gas Limited.
By integrating solar energy into its operational framework, MGL aims to reinforce its commitment to sustainable business practices, while also reducing the overall carbon footprint associated with its city gas distribution network.
