December deadline for Mahanagar Gas listing

The deadline for Mahanagar Gas (MGL), a joint venture of GAIL (India) and the UK-based British Gas, to get listed on Indian bourses expires in December 2005.

The company had earlier sought permission from the Foreign Investment Promotion Board (FIPB) for delaying the public float.

A K Purwaha, managing director of MGL, said: "The promoter of MGL will have to take a view on any public float. However, as per the FIPB approval, it has to be before December 2005."

In 2003, MGL had sought extension of two years to enter the secondary market by December 2005. It had also sought amendment of the joint venture agreement which allowed it to continue with the arrangement of foreign equity participation up to 50 per cent in the paid-up capital for a period of two years.

At present, GAIL and BG each hold 49.75 per cent equity with the Maharashtra government having a 0.5 per cent equity.

MGL is into distribution of compressed natural gas and piped natural gas (PNG) in Mumbai. At present it supplies PNG to over 2,21,000 houses, over 650 small commercial and 45 industries and CNG to over 1,47,000 vehicles across Mumbai.

It is now planning to invest Rs 250 crore over the next two years in expanding city gas distribution network to outskirts of Mumbai. The company intends to stretch its reach in areas such as Kalyan-Dombivili, Taloja, Vashi- Navi Mumbai, Pimpri-Chinchwad and Pune for piped gas.

Meanwhile MGL has tied up with Easy Bill, a Hero Group Company for the collection of the domestic MGL bills across Mumbai.