IGL’s Manufacturing of Domestic Gas Meters to Drive Demand for Polycarbonate
Indraprastha Gas Limited (IGL), the largest CGD entity in the country has announced of its plans to start manufacturing of domestic natural gas meters in order to reduce dependence on imports from China. IGL has a monopoly over CGD infrastructure in Delhi NCR and as of January 2020, a total of 534 CNG stations are operational in Delhi. 34 CNG stations have been added in Delhi in the last year. Similarly, domestic PNG connections for both industrial and household sectors have been assessed at 13.2 lakhs. The Ministry of Petroleum and Natural Gas (MoPNG) has estimated 4 crore new PNG connections in the next 5 years. As demand for natural gas as a fuel is poised to increase manifolds in the years to come, IGL’s foray into manufacturing of gas meters would address the domestic demand in rapidly expanding city gas networks across the region. This backward integration strategy from the company with an estimated investment worth of INR 1 Billion, would promote ‘Make in India’ initiative and help it to stay afloat even after the company loses its monopoly in the region. The manufacturing facility would produce both mechanical meters and smart meters. Growth in such ancillary industries would drive the polymers demand in the country such as that of polycarbonate. Polycarbonate finds wide application in gas meters apart from its consumption in automotive sectors. Manufacturing of gas meters would require polycarbonate for casing, thereby driving the demand for the product in the country.