A western Indian state, Gujarat has revolutionalised its power sector by forming and implementing several reforms in its power sector. The state government´s efforts have seen a new light in corporate world who have a keen eye on Gujarat´s development and investors have taken up the ample business opportunities in various infrastructure projects.
Power is key to industry and Gujarat has a good record of consistent power supply for commercial use. The state has planned several initiatives to build adequate capacity in generation, transmission and distribution of power supply. These include rationalising the power tariff structure, encouraging power generation from non-conventional sources, focusing on energy conservation and improving the quality of services to consumers.
The Gujarat Urja Vikas Nigam Limited (GUVNL) is an electrical services umbrella company in the state of Gujarat, India. It was set up in May 1999 and is registered under the Companies Act, 1956.
The Company was created by the Gujarat Electricity Board (GEB) as its wholly owned subsidiary in the context of liberalisation and as a part of efforts towards restructuring of the power sector with the aim of improving efficiency in management and delivery of services to consumers.
As a part of Power Reform Process, the Electricity Act, 2003, was passed by the Central Government and Gujarat Electricity Industry (Re-organization & Regulation) Act, 2003, was passed by the Government of Gujarat to restructure the Electricity Industry with an aim to improve efficiency in management and delivery of services to consumers.
The Companies incorporated are as under:
The Gujarat Urja Vikas Nigam Limited was incorporated as a Govt. of Gujarat Company. Since 100 per cent shares in the other six companies are held by GUVNL w.e.f 1 April 2005 they have become subsidiary companies of GUVNL as per the provisions of the Companies Act,1956.
GUVNL is engaged in the business of bulk purchase and sale of electricity, supervision, co-ordination and facilitation of the activities of its six subsidiary companies. The GSECL is engaged in the business of Generation of Electricity. The GETCO is engaged in transmission. UGVCL, DGVCL, MGVCL and PGVCL are engaged in distribution.
The company was incorporated to take over the assets, liabilities and personnel of the GEB in accordance with Schedule G of the Main Transfer Scheme Notification dated 24 October 2003. It has to carry out the residual functions (including power trading) of the defunct GEB.
Astonfield's 11.5 MW solar plant in Gujarat
Gujarat invested in development of solar energy and has had India's largest solar power plant as of January 2012. It has allotted 716 MW of solar power capacity to 34 national and international solar project developers in 2009, against the planned 500 MW capacity under its solar power policy. This is expected to bring in investments of Rs.120 billion and generate employment for 5,000 people. By 2014, Gujarat plans on producing 1,000 MW of energy by solar power. When taking all renewable energy sources into account, Gujarat has the highest share of renewable energy sources in India, about 14 per cent (12,489 MW).