Mahanagar Gas (MGL) invests Rs 1,325 crore in biogas & battery

Signifying energy diversification, Mahanagar Gas Limited (MGL), a subsidiary of GAIL (India) Ltd, has announced plans to invest about Rs 1,325 crore to establish a battery manufacturing unit and a compressed biogas (CBG) project. These investments will be made over the next two years in partnership with strategic collaborators, marking entry of MGL into the clean and alternative energy space.

The initiative represents a major step in MGL efforts to reduce dependence on fossil fuels and position itself as a key player in India’s energy transition.

Ashu Shinghal, MD of MGL held that nearly 70% of the company’s revenues come from CNG today and to ensure sustained growth, MGL has decided to build a presence in at least one non-fossil fuel segment.

The decision follows a comprehensive internal strategic review conducted in collaboration with Boston Consulting Group (BCG), which recommended expansion into cleaner energy domains.

Rs 900 cr Battery Gigafactory in Karnataka

As part of this diversification strategy, MGL has partnered with US-based International Battery Company (IBC) to set up a state-of-the-art battery gigafactory in Karnataka. The project, with an estimated investment of Rs 900 crore, has already secured land allocation from the state government.

Construction will start later this quarter and the plant expected to be commissioned by the end of 2026. MGL believes that this facility is expected to play a pivotal role in bolstering India’s battery manufacturing capacity, supporting the nation’s push toward electric mobility and energy storage for grid applications.

The Biogas Avenue 

In addition to the battery venture, MGL is also planning to establish a compressed biogas plant, further expanding its footprint in non-fossil fuel solutions. This aligns with the Indian Government’s broader push for alternative sustainable fuels, especially in the transport and industrial sectors.

By diversifying into battery storage and biogas production, MGL is working to build a future-ready business model that is environmentally responsible and less vulnerable to the volatility of traditional fuel markets.

On the same lines, MGL signed an MoU earlier this year with Brihanmumbai Municipal Corporation (BMC) to develop a bio-CNG plant at Deonar dumping ground and scientifically dispose a third of its waste.