IGL outlines plan to mitigate impact of Delhi EV policy on sales
Kamal Kishore Chatiwal, Managing Director of Indraprastha Gas, assured CNBC-TV18 that the company has a robust strategy ready to counter any volume impacts from the electric vehicle (EV) policy recently outlined by Delhi government.
Addressing the Delhi government's push for a fully electric fleet for cab aggregators and delivery services by 2030, the Managing Director of Indraprastha Gas, Kamal Kishore Chatiwal, assured CNBC-TV18 that the company has a robust strategy ready to counter any volume impacts from the electric vehicle (EV) policy.
The EV policy mandates a phased integration of electric vehicles into the fleets of companies like Uber and Ola, starting with 5% within six months, escalating to 50% over three years, and culminating in a full 100% transition within five years. This directive is set to accelerate the uptake of EVs in Delhi, potentially impacting the CNG market
IGL’s volume share in Delhi's CNG taxis is around 14%. For autorickshaws, it is around 6% and a majority of them are run by individuals, not aggregators, he noted.
IGL’s CNG volumes for FY23 and the first quarter of FY24 were at 6.1 and 6.2 mmscmd, respectively.
In terms of volumes, he said, "In NCR, it is around 87% and 13% comes from outside NCR. Sales are picking up and we are hopeful that going forward that number will touch around 25% in the next three to four years.”
The company is in talks with State Transport Undertaking (STUs) for the conversion of buses into CNG. Around 500 buses coming from Uttarakhand could be converted to CNG and 600 buses from Haryana, Rajasthan and UP could be converted to CNG, he mentioned.
The gas distribution company reported a 28.5% year-on-year rise in profit to ₹534.8 crore for the July - September quarter on Wednesday, November 1. A CNBC-TV18 poll had predicted a profit of ₹451 crore.
IGL also declared an interim dividend of ₹4 per share at the face value of ₹2 each.
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