MGL to expand ops; Maharashtra govt profits from IPO listing

Mahanagar Gas Ltd (MGL), which listed on the bourses today, will expand its operations to areas around the city, a senior official said today.
Post listing, the value of Maharashtra government's 10 per cent stake in the company has grown manifold to Rs 530 crore.
MGL is a major distributor of compressed natural gas (CNG) and piped natural gas (PNG) in Mumbai. It is a joint venture between Gas Authority of India Ltd (GAIL), British Gas Ltd (BGL) and government of Maharashtra.
Principal Secretary (Industries) Apoorva Chandra said encouraged by the success of MGL, its operations are being expanded to urban areas in adjoining Raigad, Navi Mumbai and Thane.

He said laying of PNG pipelines in upmarket localities like Malabar Hill as also slum areas is not feasible because of narrow road widths in these locations.
"In December 2014, the Maharashtra government allocated Rs 10 crore for purchase of 10 per cent stakeholding in MGL," he told reporters here at Mantralaya.

The MGL stock, which listed at Rs 540, a premium of 28.26 per cent on BSE, closed with a gain of 23.49 per cent at Rs 519.90. At NSE, the scrip ended 23.58 per cent higher at Rs 520.30.
Post-listing, the value of the state's holding in MGL is worth Rs 530 crore, he said, adding the company supplies CNG to 4.20 lakh vehicles, 1.90 auto-rickshaws and about 1 lakh taxis.

Replying to queries over bringing PNG to more households in the city, he said the government is trying to provide maximum connections.
About progress on the MoUs signed during Make In India Week held in Mumbai in February, Chandra said implementation work on 700 to 800 pacts related to micro, small and medium enterprises (MSMEs) worth Rs 4 lakh crore is already underway.
On progress on Delhi-Mumbai Industrial Corridor (DIMC), he said the state government has already taken possession of 850 hectares of land at Shendre near Aurangabad. Already, five foreign companies have shown keen interest in participating in the project.

The only site in Aurangabad under DMIC - Bidkin - is awaiting environment clearance, he said.
In view of water scarcity in Marathwada, he said a Rs 350-crore sewage treatment plant under the Centre's urban renewal scheme JNNURM is being constructed in Aurangabad to recycle water.
At the plant, sewage water will be treated, recycled and used for industrial purposes, he said.