Mahanagar Gas Limited (MGL), a subsidiary of GAIL (India) Ltd, is taking a major step to diversify its energy portfolio. The company announced an investment of approximately ₹1,325 crore, in collaboration with strategic partners, to establish a battery manufacturing unit and a compressed biogas (CBG) production facility over the next two years. The move marks MGL’s foray into clean and alternative energy sectors, aimed at reducing its reliance on fossil fuels and securing long-term growth.
New Energy, New Direction
Ashu Shinghal, Managing Director, Mahanagar Gas, stated, “Currently, nearly 70% of our revenues come from CNG. To ensure sustained growth, we’ve decided to build a presence in at least one non-fossil fuel segment.” The decision follows an internal strategic study conducted in partnership with Boston Consulting Group (BCG), which guided the company’s vision for entering new energy domains.
Battery Gigafactory in Karnataka
In a major milestone, MGL and US-based International Battery Company (IBC) have formed a joint venture to set up a gigafactory in Karnataka. The government has already allocated land for the ₹900 crore project, and construction will begin later this quarter. The partners expect to commission the facility by the end of 2026. This battery manufacturing unit will significantly boost India’s evolving energy storage ecosystem, supporting the transition to electric mobility and grid storage solutions.
Biogas Facility to Complement Green Push
Alongside the battery venture, Mahanagar Gas is also planning to establish a compressed biogas plant. This move further diversifies its non-fossil fuel offerings. This aligns with the government’s broader push toward sustainable fuel alternatives. The focus is particularly strong in the transport and industrial sectors.
Driving India’s Energy Transition
As reported by ET Energy World, with this ₹1,325 crore investment plan, Mahanagar Gas is positioning itself at the forefront of India’s clean energy transition. As the company ventures into battery storage and biogas. It aims to reduce dependency on traditional fuels and build a future-ready, resilient business model.
