Acquires 26% Stake in the Solar Power SPV, FPEL Reliant Energy Private Limited for ₹3.89 crore
Mahanagar Gas Ltd. (MGL), a city gas distribution (CGD) company said it has signed a Share Subscription Agreement (SSA) and Shareholding Agreement (SHA) with Fourth Partner Energy’s FPEL Reliant Energy Private Ltd. and its holding company FPEL Saur Vidyut Private Ltd. on to acquire a 26% stake in FPEL Reliant for ₹3.89 crore.
The investment will support the setting up of a solar power plant in Maharashtra and this makes MGL’s foray into solar energy.
The acquisition is compliant with regulatory requirements related to power consumption under the Electricity Act, 2003 (read with the Electricity Rules, 2005. By integrating renewable energy into its operations, MGL aims to strengthen its commitment to sustainable business practices and reduce the carbon footprint associated with its operations.
Commenting on the company’s foray into renewable energy, Ashu Shinghal, Managing Director, Mahanagar Gas Limited said, “Mahanagar Gas Limited is continuously exploring opportunities to integrate cleaner and more sustainable energy solutions into its operations. Our foray into solar energy is a step towards adopting cleaner energy sources for our CNG station network while optimising energy costs and meeting regulatory requirements. As we continue to expand our footprint within the state of Maharashtra and beyond, incorporating renewable energy solutions will remain an important part of our long-term growth strategy.”
The acquisition will be completed through a cash investment and is expected to be finalised within six months from the execution of the agreements. Following completion, FPEL Reliant will become an associate company of Mahanagar Gas Limited.
Jay Kumar Waghela, CEO (Distributed Business Unit), Fourth Partner Energy said, “We at Fourth Partner Energy are proud to partner with Mahanagar Gas Limited in its endeavour to integrate renewable power into their operational ecosystem and supporting India’s transition towards cleaner energy solutions. Corporates across various sectors are boosting their use of solar and other renewables to lower carbon emissions and promote a greener environment. At FPEL, we are proud to offer all integrated clean energy solutions including solar, wind, battery storage, hybrid power and carbon credits on a single platform to help players like MGL fast-track its net zero goals. We are thrilled and look forward to this new journey with MGL.”
