IGL and MGL shares are in focus today after Brihanmumbai Municipal Corporation (BMC) took a significant step toward promoting sustainability by directing all eateries, bakeries, hotels, and roadside vendors in Mumbai to switch to clean and eco-friendly fuel options. As part of this initiative, businesses must transition to using Compressed Natural Gas (CNG) or Piped Natural Gas (PNG) instead of traditional polluting fuels by July 8.
Key BMC Directives for Cleaner Fuel Transition
-
Mandatory Adoption of CNG or PNG: BMC has instructed all food establishments, including restaurants, dhabas, and street vendors, to replace polluting fuel sources with eco-friendly alternatives such as CNG or PNG. These cleaner fuels are expected to help reduce air pollution and contribute to a healthier environment for the city’s residents.
-
Notices Issued to Over 84 Establishments: The BMC has already sent notices to more than 84 eateries, hotels, and roadside food vendors, urging them to comply with the new fuel guidelines. Medical officials have been assigned to monitor and ensure that the transition process is carried out smoothly.
-
Licence Renewals on Hold: According to the BMC’s latest order, businesses that fail to comply with the new fuel guidelines by the stipulated deadline will have their licences marked as ‘Not To Renew.’
-
No New Licenses for Conventional Fuel Users: In a bid to accelerate the adoption of eco-friendly fuels, BMC has also announced that no new licences will be granted to establishments that continue to use conventional fuels after the July 8 deadline.
With the looming deadline for businesses to comply with the new fuel regulations, the demand for CNG and PNG is set to rise significantly. As two of the leading suppliers of these cleaner fuels, IGL and MGL are poised to see an uptick in their business operations.
As of 11:01 AM, IGL shares were trading 0.33% lower at Rs 189.63. On the other hand, MGL shares were trading 1.34% higher at Rs 1,294.50.
