Maharashtra gains Rs. 520 crore after Mahanagar gas IPO gets listed

State had bought 10 per cent shares for Rs. 10 each.

The government of Maharashtra has made windfall gains worth Rs. 520 crore following the listing of Mahanagar Gas Limited IPO on Monday on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).

The State government had invested Rs. 10 crore, holding 10 per cent shares in Mahangar Gas Limited in December 2014, while becoming one of the three partners. The other two partners are Gas Authority of India Limited, a central government undertaking and British Gas Limited, a private player. Following the listing at the BSE and NSE, the shares have gone up to Rs. 530 crore, giving Rs. 520 crore profit to the government, said State Industry Department’s Principle Secretary Apurva Chandra.

“The huge rise in the share prices is the result of trust shown in the government-private partnership. We are extremely happy that the tax payer’s money was invested at the right place, which has given us huge profit,” said Mr. Chandra. At present, Mahanagar Gas provides pipe gas connection to around 8.20 lakh households in Mumbai and Navi Mumbai. It has received permission to extend its operations in Raigad district as well.

“We hope to extend the functioning of the company beyond Mumbai and Navi Mumbai. Apart from households, the company provides CNG to 4.20 lakh vehicles and 1.90 lakh autos, helping to reduce pollution,” he said.

Mr. Chandra however said that increasing number of pipe gas connections in Mumbai is turning out difficult as around 40-50 per cent of the city’s population resides in slums. “Even in areas such as Malabar Hill, laying out pipes by digging roads has become really difficult. The company is working on it and I am sure solutions will be found,” said Mr. Chandra.

Recycled water

The State’s Industries Department has decided to use only recycled water from the sewage treatment plant for the upcoming industries at Shendra near Aurangabad under Delhi Mumbai Industrial Corridor (DMIC). Principle Secretary of Industries Department, Apurva Chandra said the decision was taken owing to water scarcity problems in the region. “We will be recycling water from Aurangabad, which will be used for the industry. Process to call for tenders will begin soon,” he said.