Gujarat Energy Limited Sets Record with Massive Dividend Payment
Gujarat Energy Limited and GSPL Transmission Limited set a historic record by paying a combined dividend of Rs 384.67 crore to the state government.
In a landmark financial achievement, state government undertakings Gujarat Energy Limited (GEL) and GSPL Transmission Limited (GTL) have delivered a historic windfall to the state. For the financial year 2025-26, the two companies have paid a combined dividend totaling Rs 384.67 crore to the Gujarat government, marking the highest dividend ever paid by any state-controlled company in a single year.
The dividend cheques were presented to Chief Minister Bhupendra Patel in Gandhinagar by Avantika Singh, the Managing Director of GEL and Vice Chairperson of GTL. The ceremony was attended by high-ranking officials, including Energy and Petrochemicals Minister Rushikesh Patel and Minister of State Kaushik Vekariya.
Breaking Down the Record Dividend
The massive payout is comprised of two major contributions that will significantly bolster the state's revenue and fund public welfare projects:
- Gujarat Energy Limited: Rs 324 crore
- GSPL Transmission Limited: Rs 60.67 crore
Chief Secretary and Chairman of both GEL and GTL, Manoj Kumar Das, described the event as a "historic moment" for the entities involved. This influx of capital is expected to play a vital role in supporting development-oriented initiatives across the state.
The Power of the 'Scheme of Arrangement'
The unprecedented surge in dividend payments is not a coincidence but the direct result of a strategic corporate restructuring known as the Scheme of Arrangement. Implemented on May 1, coinciding with Gujarat Gaurav Diwas, this scheme has fundamentally altered the financial landscape of these companies.
Avantika Singh noted that for years, the company's ability to provide significant benefits to the government was hindered by its legacy corporate structure. The new arrangement has effectively unlocked the company's true financial potential. Key changes under this scheme include:
- Renaming and Integration: Gujarat Gas Limited has been rebranded as Gujarat Energy Limited (GEL) following the integration of the Gujarat State Petroleum Corporation (GSPC) into it.
- New Business Operations: The gas transmission business, formerly under Gujarat State Petronet Limited (GSPL), is now managed by GSPL Transmission Limited (GTL).
- Increased State Shareholding: The state government's stake in GEL has jumped from approximately 6 per cent to roughly 38 per cent. Similarly, the government now holds an approximately 38 per cent stake in GTL, whereas it previously had no direct shareholding.
A Four-Fold Increase in Returns
The impact of this restructuring is starkly visible when comparing recent financial performance. Prior to the scheme, the total dividends paid by Gujarat Gas Limited to the state government over a three-year period (from 2022-23 to 2024-25) amounted to approximately Rs 81.55 crore.
In a staggering turnaround, the newly restructured Gujarat Energy Limited has paid Rs 324 crore in a single financial year. This means the state has received nearly four times the amount of the previous three years' total in just one year, demonstrating the massive efficiency gains brought about by the new corporate structure.