Mahanagar Gas Ltd (MGL), a joint venture between British Gas and Gas Authority of India Ltd (GAIL), has revived its plan to place a 20 per cent stake with the public or financial institutions.
According to MGL sources, currently the company is exploring two options. "The first is to go public, while the second is to offer a stake to financial institutions. Both the proposals are being considered by the company management and a final decision will be taken before the end of the year," MGL sources said.
In 1999, MGL had plans to place a 20 per cent stake to the public. However, the company shelved the plan due to bad market conditions.
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Currently, both British Gas and GAIL hold a 35 per cent stake each in the company, while the Maharashtra government holds 10 per cent.
Meanwhile, the Oil Industrial Development Board (OIDB) has sanctioned Rs 100 crore to MGL for its expansion plans. MGL's pipeline network, which has already reached Mumbai's suburban limits -- Goregaon in the western side and Mulund in the central side, would reach Dahisar by the end of this year, sources said.
MGL has also plans to extend its CNG supply net work to Navi Mumbai along with City Industrial Development Corporation (CIDCO) and the government's nod is expected for this venture soon, they added.
As per plans, CIDCO will lay the gas pipelines along with its water and telephone lines in Navi Mumbai, while MGL will supply gas.
Though the state government has given permission to extend the gas supply net work to south Mumbai, due to lack of space in the city MGL has not yet started its outlets there. The Brihanmumbai Municipal Corporation has also given its permission to lay gas pipeline in the city, MGL sources said.
Hikes CNG prices
MGL has increased its CNG prices by Rs 3 per kg to Rs 17. The increse in oil prices world over is the reason behind the price hike, MGL officials said.
They said over the last one year, oil prices have increased by around 200 per cent.