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MGL plans Rs1,000 cr capex over five years

MGL plans Rs1,000 cr capex over five years
PTI
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First Published: Thu, Nov 25 2010. 04 18 PM IST
Updated: Thu, Nov 25 2010. 04 18 PM IST
Mumbai: Mahanagar Gas Ltd (MGL), one of leading natural gas distribution companies in the country, has chalked-out an around Rs1,000 crore capital expenditure plan for expansion over the next five years, a top company official said.
“We are looking at spending Rs200 crore per annum over the next five years for expansion of distribution network in Mumbai city and adjoining areas,” MGL’s managing director, V C Chittoda, told PTI on the sidelines of a conference in Mumbai today.
In the next five years, MGL has plans to increase its customer base to about eight lakh households, operate about 200 CNG stations and expand the steel pipeline network to around 500 kilometres to supply natural gas, Chittoda said.
Today, MGL has already connected 4.5 lakh households and over 1,000 small commercial and industrial establishments. MGL also supplies CNG to over two lakh vehicles which include about 1.4 lakh rickshaws and over 60,000 taxis/cars in Mumbai.
Mumbai city has about 12 lakh households and MGL has reached only 30% with piped natural gas connection and 70% are still to be reached, he said.
The company plans to add 70,000 gas connections to households every year, Chittoda said, adding that the company is expanding in greater Mumbai, Thane, Panvel, Mira Bhayander, Dombivli, Ambernath and Ulhasnagar and will be bidding for adjoining areas.
Asked on the company’s IPO plans, Chittoda said that this is an option with its promoter Gail India Ltd, BG Group of the UK and Government of Maharashtra. The IPO issue will be decided by the promoters, he said.
To cater to growing natural gas demand of existing and expansion areas, MGL is sourcing gas from various existing suppliers like GAIL and RIL. The long-term gas sourced presently will suffice MGL’s need for the next two years
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First Published: Thu, Nov 25 2010. 04 18 PM IST