In a notification posted by IGL on 25th Apr’23 (link), the regulator PNGRB has clarified long-pending issues pertaining to formal CGD authorisation for the areas of Greater Noida, Faridabad and Gurugram. We note IGL already supplies gas (0.5mmscmd) to Gurugram and Faridabad for a nominal service fee of Rs2/scm, which implies an EBITDA of only Rs350mn – while for balance volumes, IGL’s EBITDA margin is at a healthy ~Rs7.7/scm (FY22 reported earnings).