City gas giant Indraprastha Gas is shifting gears. The company will increase its capital expenditure (capex) for FY26 by 67%, jumping from ₹1,200 crore last year to over ₹2,000 crore. The move? A bold bet on solar power, liquefied natural gas (LNG), and compressed biogas (CBG).
This big spending push is part of IGL’s strategy to reduce its heavy reliance on the city gas distribution (CGD) business, which faces growing uncertainty due to India’s rising electric vehicle (EV) wave.
The shift reflects something bigger—India’s energy game is changing. For everyday users, especially those who rely on CNG for transport or cooking gas, it signals that companies like IGL are preparing for a post-fossil fuel future. The usual gas pump might soon have a solar plant or a biogas unit behind it.
“We have to be ready. If EVs take over or autos move away from gas, we need options,” said IGL Managing Director Kamal Kishore Chatiwal, speaking to Moneycontrol.
Solar in Rajasthan, Biogas across India
The company’s biggest upcoming project? A 500 MWp solar power plant in Bikaner, Rajasthan. It’ll be built in partnership with state-run RVUNL and will cost about ₹2,066 crore. Cabinet clearance is expected next month, after which construction begins.
On top of that, IGL plans to set up 10 compressed biogas plants, where it will hold at least 26% equity. These plants will tap into agricultural and organic waste to produce clean fuel—a win-win for rural India and the environment.
And that’s not all. The company is also eyeing 6–7 retail LNG stations in FY26 to serve heavy-duty transport vehicles like trucks and buses.
Capex split: Still gas-heavy, but greener
Out of the ₹2,000 crore capex, ₹1,400 crore will still go toward IGL’s core CGD business. The remaining ₹600 crore is reserved for solar, CBG, and LNG expansion. Last year, nearly all of IGL’s capex went into city gas—this pivot is a big change.
The irony? Clean energy needs fossil profits
Here’s the twist: IGL is using fossil fuel profits to fund its clean energy shift. It’s like your smoker friend quitting cold turkey—on nicotine patches they bought with cigarette money. Poetic, no?
But jokes aside, it’s smart risk management. As India pushes for net-zero and cities adopt EVs, gas distributors need to evolve or get left behind.
Final thought
Indraprastha Gas is playing the long game. It’s no longer just about supplying gas to homes and autos. It’s about survival in an energy market where clean is king—and gas might soon be passé.
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