Mahanagar Gas Limited has agreed to acquire a 26% stake in FPEL Reliant Energy Private Limited, a special purpose vehicle of Fourth Partner Energy, as part of its move to integrate renewable energy into its operations.
The investment follows the signing of a Share Subscription Agreement and Shareholding Agreement with FPEL Reliant and its holding company FPEL Saur Vidyut Private Limited on March 9.
Mahanagar Gas will invest approximately ₹3.89 crore in the solar project, which will support the development of a solar power plant in the state of Maharashtra.
Electricity generated from the project will be used to power the company’s CNG station network across Maharashtra, helping reduce operational energy costs and supporting its transition toward cleaner energy sources.
The transaction complies with regulatory provisions under the Electricity Act, 2003 and Electricity Rules, 2005, which allow companies to procure power from captive or group captive renewable energy projects.
Ashu Shinghal, managing director of Mahanagar Gas, said the company is exploring opportunities to integrate sustainable energy solutions into its operations as part of its long-term growth strategy.
“Integrating renewable power into our operational ecosystem will help optimise energy costs while strengthening our commitment to cleaner and more sustainable energy solutions,” Shinghal said.
Following completion of the investment, which is expected within six months, FPEL Reliant will become an associate company of Mahanagar Gas.
Fourth Partner Energy currently operates more than 1.6 GW of renewable energy assets and aims to expand its portfolio to 9 GW by FY2031, focusing on solar, wind, hybrid energy and storage solutions for corporate customers.
Mahanagar Gas, one of India’s largest city gas distribution companies, supplies compressed natural gas to more than 1.2 million vehicles and piped natural gas to over 3 million households across Mumbai and surrounding regions.
