MGL offers relief to city bakers to transition to cleaner fuels

As part of this initiative, MGL has waived a security deposit of ₹97 lakh and committed to setting up new gas pipelines and meters at no cost to the businesses. This move significantly reduces the financial burden on bakers, who had been concerned about the transition expenses

Mumbai: A day after the Bombay Bakers Association (BBA) urged the Brihanmumbai Municipal Corporation (BMC) to subsidise the cost of transitioning to cleaner fuels, Mahanagar Gas Limited (MGL) stepped in to offer relief. On Friday, MGL, which supplies piped natural gas (PNG) and compressed natural gas (CNG) in Mumbai, announced a waiver on all costs associated with the transition for bakery and eatery owners.

Modern kitchen stove, natural gas burns with a blue flame. Household gas consumption. Close-up, selective focus

As part of this initiative, MGL has waived a security deposit of ₹97 lakh and committed to setting up new gas pipelines and meters at no cost to the businesses. This move significantly reduces the financial burden on bakers, who had been concerned about the transition expenses. Despite this relief, the total cost of internal infrastructure changes is still estimated to be between ₹10-12 lakh for each bakery.

“In line with the Bombay High Court’s directive and BMC’s mandate to promote cleaner fuels, MGL has revised its policy to facilitate eateries and bakeries affected by these regulations in making the switch to PNG,” MGL stated.

Typically, MGL requires industrial and commercial customers to provide a bank guarantee as a limited-period refundable security deposit for last-mile dedicated gas infrastructure. However, citing the urgency of the High Court’s order, the company has made an exception to ensure a smoother transition.

Bakers still worried about deadlines

While the waiver has alleviated some financial pressure, bakers continue to express concerns about looming deadlines and the high cost of new ovens. “The infrastructure costs for the gas pipeline are sorted, and we are grateful for that. However, we still need time to make internal modifications and require subsidies for ovens, which cost around ₹10 lakh each,” said Nasir Ansari, president of the BBA.

Another major concern is space constraints. “All the ovens available in the market are large, but our bakeries operate in small spaces. We simply do not have enough room to fit them. Additionally, some areas still lack gas pipeline connections,” said Shaikh Sajid, owner of Central Bakery in Nagpada.

In addition to waiving transition costs, MGL has assured assistance in obtaining the necessary statutory approvals, ensuring that bakers won’t have to bear additional expenses beyond purchasing new cooking appliances. The company has also committed to covering the costs of downstream pipelines and metering facilities.

On February 26, the BBA wrote to civic authorities requesting an extension and subsidies for the transition. This plea follows a directive issued by the BMC on July 8, in compliance with the Bombay High Court’s January 9 order, which gave businesses six months to switch to cleaner fuels due to concerns over health risks and air pollution.

According to a study by the Bombay Environment Action Group, wood-fuelled bakeries are the third-largest source of pollution in Mumbai. The Mumbai Climate Action Plan 2023 estimates that these bakeries contribute approximately 6% to the city’s overall air pollution levels.