### **Overview** Indraprastha Gas Limited (IGL) is a leading **City Gas Distribution (CGD)** company in India, established in 1998 as a joint venture between **GAIL (India) Limited** and **Bharat Petroleum Corporation Limited (BPCL)**, both Maharatna Public Sector Enterprises. The Government of the National Capital Territory (NCT) of Delhi holds a 5% equity stake. Listed on Indian stock exchanges since December 2003, IGL has grown into one of the country’s most prominent clean energy providers, primarily serving the **Delhi-NCR region** and expanding aggressively into parts of **Uttar Pradesh, Haryana, and Rajasthan**. --- ### **Core Business & Market Position** - **Exclusive Supplier**: IGL has been the **sole authorized distributor of CNG and PNG** in the NCT of Delhi since 1998, benefiting from **exclusive marketing and infrastructure rights** granted by the **Petroleum and Natural Gas Regulatory Board (PNGRB)**. - **Sales Mix**: - **CNG** accounts for approximately **75% of total sales volume**, predominantly fueling the transportation sector. - **PNG** serves **residential, commercial, and industrial customers** across Delhi, Gautam Buddh Nagar, Ghaziabad, and extended regions. - As of FY 2022–23, IGL achieved a **record sales volume of 2,952 million standard cubic meters (MMSCM)**, reflecting **over 15% year-on-year growth**. - **Customer Base** (as of 2022–23): - Over **1.7 million CNG vehicles** - Approximately **2.4 million domestic PNG consumers** - More than **9,000 industrial and commercial customers** --- ### **Geographic Presence & Expansion** - **Primary Operations**: Delhi, Noida, Ghaziabad, Gurugram, Meerut, and Kanpur. - **New Markets**: Commercial rollout in **Kanpur, Kaithal, Muzaffarnagar, Shamli, Fatehpur, Hamirpur, Ajmer, Rajsamand, Pali, Banda, Chitrakoot**, and **YEIDA** (Yamuna Expressway). - **Planned Expansion**: Focus on **organic growth** through pipeline network extension and **inorganic growth** via strategic acquisitions in the CGD sector. - In FY 2024–25, IGL added **1,726 new industrial and commercial PNG connections** and extended networks into **Hapur, Chandni Chowk, and Paharganj**. --- ### **Infrastructure & Innovation** - **Pipeline Grid**: Extensive and continuously expanding network supporting efficient gas distribution. - **CNG Stations**: Operates over **650+ CNG stations**, with plans for further expansion. - **Digital Transformation**: - Enhanced **IGL Connect app** and **SAP-based CRM system** for improved customer service. - Digital tools such as **OTP-based billing**, **E-POD (Electronic Proof of Delivery)**, and **prepaid CNG cards**. - One of the first in India to introduce **2400 SCMH integrated compressors**, **CNG for train locomotives**, and **field mobility apps** for PNG connections. - **Mobile Refuelling Units (MRUs)**: Introduced to improve CNG accessibility, with pilot programs expanding to new areas. --- ### **Strategic Initiatives & Diversification** IGL is actively transforming from a traditional CGD player to a **multi-fuel clean energy provider**, with a forward-looking corporate strategy focused on **diversification, sustainability, and vertical integration**. #### **1. Renewable Energy** - **Solar Power Projects**: - Signed an MoU with **Rajasthan Government** and **RVUNL** to develop a **500 MWp solar plant** via a joint venture (estimated equity outlay: **Rs. 382 crores**). - Setting up a **20 MW agro-solar plant** under group net metering in Delhi to meet captive power needs. - **Green Energy Pilots**: Procuring renewable power for two Delhi CNG stations under **Green Energy Open Access** framework. #### **2. Electric Mobility** - **EV Charging Infrastructure**: - **17 EV chargers operational**; target of **50 fixed EV charging stations** by end of FY 2024–25. - Two standalone EV charging stations established in Delhi. - **EV Ecosystem Expansion**: Exploring investments in **battery recycling, battery swapping**, and **EV component manufacturing**. #### **3. Alternative Fuels** - **Compressed Biogas (CBG)**: Active participant in the **SATAT (Sustainable Alternative Towards Affordable Transportation)** and **GOBAR-DHAN** schemes to promote waste-to-energy solutions. - **LNG/LCNG Stations**: Developing infrastructure to support **heavy commercial vehicles** with cleaner fuel alternatives. - **Long-Haul CNG Adoption**: Successfully piloted **Type IV cylinder-based CNG buses** on **Delhi–Dehradun route**; promoting adoption among state transport and private fleets. #### **4. Backward Integration** - **IGL Genesis Technologies Limited** (51% owned JV with Genesis Energy): - Gas meter manufacturing plant in **Sector 145, Noida** set for **commercial production in September 2025**. - Will reduce dependency on third-party suppliers and support internal and external demand. - **Future Manufacturing Plans**: - **Type IV lightweight cylinders** for CNG and future **hydrogen applications**. - Exploration of manufacturing **compressors and other CGD equipment**. #### **5. Inorganic Growth** - Evaluating **acquisition opportunities** in the CGD space to expand geographical footprint. - Holds equity stakes in: - **CUGL (50%)** - **MNGL (50%)** - **IGTL (51%)** – Meter manufacturing JV --- ### **Regulatory & Market Tailwinds** - **Supportive Government Policies**: Pro-clean fuel initiatives (e.g., CNG in cities, SATAT, National Green Hydrogen Mission) create a favorable environment for growth. - **Urbanization Trends**: With **40% of India’s population expected to live in urban areas by 2036**, demand for clean, piped energy is set to rise significantly. - **Gas Sourcing Strategy**: - **Firm, low-cost domestic gas allocation** from the Government of India for **CNG and domestic PNG** (covering ~75% of sales volume). - **Long-term RLNG contracts** for industrial/commercial PNG. - **Flexible procurement** from Indian Gas Exchange (IGX) and open market (Shell, IOCL, BPCL, etc.) to manage cost volatility. --- ### **Financial & Operational Strength** - **Robust Financials**: Strong profitability, healthy operating cash flows, **zero debt**, and solid credit rating. - **High Entry Barriers**: First-mover advantage, exclusive rights, and extensive infrastructure create a **defensible market position** in core operating regions. - **Promoter Support**: Backed by **GAIL and BPCL**, providing **technical expertise, gas supply access, retail synergies, and managerial strength**.