CGD cos stick with expansion projects amid push for EVs

“Electric vehicles may be the talk of the town, but they are a long way off in most vehicle categories in India. Except for two-wheelers, I don't see EVs making a big dent in any other segment, "said Jinal Mehta, director of Torrent Gas. Two-wheelers is not a segment that companies focus on. of CGD, and compressed natural gas (CNG) will have a stronger game in the next decade in India, he added. Torrent plans to invest ₹Rs 10,000 crore in the next five years to expand its business. Last month, it had announced an investment of ₹Rs 5 billion in Tamil Nadu over the next five years to establish the infrastructure for its CGD business.

The Oil and Natural Gas Regulatory Board has authorized Torrent to establish and operate CGD networks and provide CNG and piped natural gas (PNG) in 33 districts in seven states and one Union territory. Mahanagar Gas said that a large majority of the demand for CNG in Mumbai comes from taxis, private cars and the 350,000 autorickshaws that circulate on the city's roads. The company said that the space to install the electric charging infrastructure is inadequate in Mumbai to support the adoption of electric vehicles on a large scale for at least the next three years.

"Yes, EVs will have some market share going forward, but not so much that it becomes a very big risk for Mahanagar Gas," said Sanjib Datta, managing director of MGL. In the long term, it won't phase out CNG, and neither will gasoline or diesel, Datta added.

Up to 13 states, including Andhra Pradesh, Delhi and Karnataka, have approved or notified specific policies to promote the adoption of electric vehicles, according to a written response to Rajya Sabha on Aug.9.

Maharashtra launched its electric vehicle policy in July and will offer subsidies to the first 100,000 buyers of electric two-wheelers for up to ₹5,000 per kWh of battery capacity. The state expects electric two-wheelers to account for 10% of all new vehicle registrations by 2025.