Delhi government's EV policy is hurting this gas distribution giant

The government has broadcasted to the world that it aims to turn India into a carbon-neutral economy by 2070. Accelerating EV (electric vehicle) adoption is key to achieving this goal. However, it seems like IGL (Indraprastha Gas Limited), one of India's leading city gas distributors, might be collateral damage in this war against pollution. What may be considered rather ironic is that government policies to counter rising air pollution, particularly in the NCR region, played a key role in IGL ascension and index-beating returns. So, let's dive into the tale of IGL: how the smog-laden skies of Delhi-NCR turned from its boon to bane. The ascent of IGL IGL commenced operations in 1999 in Delhi with nine CNG stations and 1,000 PNG (piped natural gas) connections. As of FY23, its capacity has increased to 792 CNG stations, 23.7 lakh residential and 9,000 commercial/industrial connections and expanded operations in NCR, Rajasthan, Maharashtra and parts of Uttar Pradesh. The company's financials have shown strong growth, with shareholder wealth multiplying more than 18 times in the last two decades. This was aided by favourable government policies. First, the ban on diesel generators and the mandate to use PNG (piped natural gas) for industrial activities contri