Delhi's EV plan a risk to IGL volumes

City gas distributor Indraprastha Gas Ltd (IGL) should sail through this financial year, but it is the next one that looks tough in the face of the Delhi government’s push for faster transition to electric vehicles (EVs). IGL’s management has clung to its exit volume guidance of nine million metric standard cubic meters per day (mmscmd) for FY24. The current volumes are 8.5 mmscmd. The management did not give a target for FY25 as there was a lack of clarity on the impact of the proposed EV policy.

- Dipti Sharma

A few days ago, the Delhi government approved an EV transition policy for cab aggregators, delivery services, and e-commerce companies. Against this backdrop, IGL foresees a decline in the number of new compressed natural gas (CNG) vehicles being added by cab aggregators in the coming years, potentially hurting its sales growth over the next 2-5 years.