State-run Mahanagar Gas Ltd (MGL) is set to invest approximately Rs 1,325 crore over the next two years, alongside its partners, to establish an electric vehicle (EV) battery manufacturing plant and a compressed biogas (CBG) production facility, as part of its strategy to diversify its business, reported The Economic Times.
Ashu Shinghal, Managing Director of MGL, told The Economic Times that the company is focusing on expanding into non-fossil fuel sectors in line with the government’s drive toward cleaner mobility solutions.
“Currently, around 70% of our revenue comes from CNG. After a joint study with BCG, we’ve decided that moving forward, MGL will operate in at least one non-fossil fuel segment to ensure future growth,” Shinghal explained.
MGL has partnered with the US-based International Battery Company (IBC) to create a joint venture for building a giga factory in Karnataka. This new entity, with IBC holding 56% and MGL 44%, has already been allocated land, with construction expected to begin later this quarter. Together, the partners plan to invest around Rs 825 crore in the plant, aiming to complete the first phase by FY27 and the second by FY28.
As per the media report, the facility will initially produce prismatic NMC lithium-ion battery cells, designed for diverse applications in mobility and energy storage. Shinghal noted that the joint venture will start with a production capacity of 1 GWh, with potential to scale up to 5 GWh if the initial results are positive.
Testing of batteries is already underway, with plans to supply them to two- and three-wheeler manufacturers in India once production begins.
In a separate move, MGL has signed an agreement with the Brihanmumbai Municipal Corporation (BMC) to establish a 1,000 tonnes per day compressed biogas plant in Maharashtra, with an investment of around Rs 500 crore. This facility will process segregated food and vegetable waste supplied by the municipal corporation.
Although compressed biogas production is still at an early stage in India, Shinghal highlighted significant growth potential, especially with vehicle makers like Maruti Suzuki showing interest in using CBG as fuel.
