Gujarat State Electricity Corporation Limited (GSECL) was incorporated in August 1993 and is registered under the Companies Act, 1956 with the objectives to initiate a process of restructuring of Power Sector and to mobilize resources from the market for adding to the generating capacity of the State and improving the quality and cost of existing generation. The Company was promoted by erstwhile Gujarat Electricity Board (GEB) as it’s wholly owned subsidiary in the context of liberalization and as a part of efforts towards restructuring of the Power Sector. The Memorandum and Articles of Association of GSECL envisage a wide spectrum of activities to improve the electricity infrastructure of Gujarat. GSECL has initiated its activities in the field of Generation of Power. The Government of Gujarat (GoG) has also given to the GSECL the status of Independent Power Producer (IPP) with approval to undertake new power projects.. The Company commenced it’s commercial operation in the year 1998. However, the operations of GSECL were limited to Power Stations units Gandhinagar #5, Wanakbori #7, Utran GBPS & Dhuvaran CCPP till the complete unbundling of erstwhile GEB was undertaken, i.e. up to 31st March 2005.

As a part of the ongoing reforms process in the state power sector, in the year 2003, the Government of Gujarat under the provisions of Gujarat Electricity Industry (Re-Organization & Regulation) Act, 2003 framed the Gujarat Electricity Comprehensive Transfer Scheme, 2003 (the Transfer Scheme) vide Government Notification No: GHU-2003-58-GEB-3537–K dated the 24th October, 2003. The Government of Gujarat issued Notification No. GHU-2004–99-GEB-1104- 7318-K dated the 31st December 2004, notifying the Provisional Opening Balance Sheet as on 31st March 2004 of the Six Transferee Companies containing the value of assets and liabilities transferred from erstwhile Gujarat Electricity Board (GEB) to the Transferee Companies. Assets of the Board were disaggregated into six companies – One each in Generation and Transmission and Four in Distribution. As a part of the above exercise, all the generation plants of GEB have been transferred to GSECL, which was a company already, in existence since 1993.   

Further, GSECL was notified as State Generating Power Plant by Government of Gujarat vide Notification No.GHU-04-31-GEB-1104-2946-K Dated 29th May 2004 with the purpose of improving efficiency in the state’s electricity Generation activities. Also vide Notification No. GHU-2004-32-GEB-1104-2946-K Dated 29th May 2004 GOG notified the Load Despatch Centre, Jambuva as the SLDC, which is to be operated by the Gujarat Energy Transmission Corporation Limited.

As a part of the reform process,the Government of Gujarat has unbundled the various functions of GEB. As a result of this unbundling,Gujarat State Electricity Corporation Limited (GSECL) has taken up the responsibility of electricity generation. Electricity Transmission has been entrusted to the already existing company - GETCO. Distribution network in the state has been split up among four distribution companies, which cater to the northern, central, southern, and western parts of the state respectively. All these companies have been structured as subsidiaries of a holding company, Gujarat Urja Vikas Nigam Limited (GUVNL). GUVNL is also the single bulk buyer in the state as well as the bulk supplier to distribution companies. It will also carry out the trading function in the state. The pictorial representation of the restructuring is as given below:

Figure 1 : Sector Structure Post Unbundling  (Erstwhile GEB)