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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. 

Under the provisions of the said Acts Govt. of Gujarat framed the Gujarat Electricity Industry Re-organization & Comprehensive Transfer Scheme, 2003, (the Transfer Scheme) vide Government Notification dated 24-10-2003 for transfer of assets/liabilities etc. of erstwhile GEB to the successor entities.
 

Accordingly erstwhile Gujarat Electricity Board (GEB) was reorganized effective from 1st April,2005 in to Seven Companies with functional responsibilities of Trading, Generation, Transmission and Distribution etc. 

The Companies incorporated are as under:

 
  1 Gujarat Urja Vikas Nigam Ltd. (GUVNL)  - Holding Company
  2 Gujarat State Electricity Corp. Ltd.(GSECL) - Generation
  3 Gujarat Energy Transmission Corp. Ltd.(GETCO) - Transmission
  4 Uttar Gujarat Vij Company Ltd. (UGVCL) - Distribution
  5 Dakshin Gujarat Vij Company Ltd. (DGVCL) - Distribution
  6 Madhya Gujarat Vij Company Ltd. (MGVCL) - Distribution
  7 Paschim Gujarat Vij Company Ltd. (PGVCL) - Distribution
 

The Gujarat Urja Vikas Nigam Limited was incorporated as a Govt. of Gujarat Company. Since 100% Shares in the other six companies are held by GUVNL w.e.f 1st April,2005 they have become Subsidiary Companies of GUVNL as per the provisions of the Companies Act,1956.

The 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 the business of Transmission of Electricity. The UGVCL,DGVCL,MGVCL and PGVCL are engaged in the business of Distribution of Electricity in the Northen, Southern, Central and Western areas of Gujarat respectively.

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