Mahanagar Gas Ventures into Renewable Energy, Acquires 26% Stake in Solar SPV
With this investment, MGL joins a growing list of energy and infrastructure companies diversifying into renewables
Mahanagar Gas Limited (MGL), one of India’s leading city gas distribution (CGD) companies, has taken a significant step towards clean energy adoption by entering the renewable energy space. The company has signed a Share Subscription Agreement (SSA) and Shareholding Agreement (SHA) to acquire a 26% stake in FPEL Reliant Energy Private Limited, a solar power special purpose vehicle (SPV).
The agreements were executed on March 9, 2026, with FPEL Reliant Energy and its holding company, FPEL Saur Vidyut Private Limited, both part of Fourth Partner Energy.
The investment, valued at approximately ₹3.89 crore, will be utilised for setting up a solar power plant in Maharashtra. The electricity generated from the project will be used to meet the energy requirements of MGL’s CNG stations across the state.
This move is expected to help MGL transition towards cleaner energy sources while also optimising operational energy costs.
The acquisition is aligned with regulatory requirements under the Electricity Act, 2003, and Electricity Rules, 2005, particularly concerning captive power consumption norms.
Commenting on the development, Ashu Shinghal, Managing Director, Mahanagar Gas Limited, said that the company is actively exploring opportunities to integrate sustainable energy solutions into its operations.
“Our foray into solar energy marks an important step towards adopting cleaner energy sources for our CNG station network. It will also help us optimise energy costs and meet regulatory requirements. As we expand our footprint in Maharashtra and beyond, renewable energy will remain central to our long-term growth strategy,” he said.
The acquisition will be completed through a cash investment and is expected to be finalised within six months. Upon completion, FPEL Reliant Energy will become an associate company of MGL.
Jay Kumar Waghela, CEO (Distributed Business Unit), Fourth Partner Energy, said the partnership reflects the growing trend among corporates to adopt renewable energy solutions.
“We are proud to partner with Mahanagar Gas Limited in integrating renewable power into its operations. Corporates across sectors are increasingly adopting solar and other clean energy solutions to reduce emissions and promote sustainability. At Fourth Partner Energy, we offer integrated clean energy solutions including solar, wind, battery storage, hybrid power and carbon credits to support companies in achieving their net-zero goals,” he said.
Fourth Partner Energy is among India’s leading renewable energy developers, with an operational portfolio exceeding 1.6 GW and an ambitious target of reaching 9 GW by FY31. The company has projects across key states including Maharashtra, Gujarat, Karnataka and Tamil Nadu.
With this investment, MGL joins a growing list of energy and infrastructure companies diversifying into renewables, in line with India’s broader push towards a low-carbon economy.
