4 months after merger, GEL pays record Rs 324 cr dividend to Gujarat government

Avantika Singh, Managing Director of GEL and Vice Chairperson of GTL, presented the dividend cheques to Chief Minister Bhupendra Patel in Gandhinagar on Tuesday.

State Public Sector Undertakings Gujarat Energy Limited (GEL) and GSPL Transmission Limited (GTL) jointly paid Rs 384.67 crore as dividend to the Gujarat government for the financial year 2025-26, as per an official statement. Individually, GEL and GTL paid Rs 324 crore and Rs 60.67 crore as dividend to the government, respectively, it added.

The record dividend was largely attributed to the recent merger of the entities involved in piped gas distribution and transmission.

“The dividend paid by GEL and GTL is the highest-ever amount paid to the state government in a single financial year by any company under its control,” said the statement.

Previously called Gujarat Gas Limited (GGL), GEL holds the country’s largest city gas distribution network supplying piped natural gas or PNG to over 23 lakh households in six states, as of December 2025.

GGL played an important role in the Gujarat government’s push to convert liquified petroleum gas (LPG) connections to PNG following the shortage of LPG after a war broke out in West Asia.

The company merged with the Gujarat State Petroleum Corporation (GSPC), another State PSU in May this year, and was renamed Gujarat Energy Ltd. Simultaneously, Gujarat State Petronet Limited (GSPL), which handled the transmission business, was taken over by GTL.

Till the merger, the Gujarat government had a six percent stake in GGL, which rose to 38% following the integration in May. A statement said that the impact of the integration was clearly reflected in the dividend figures received by the government. “During the three financial years from 2022-23 to 2024-25, Gujarat Gas Limited paid a total dividend of approximately ₹81.55 crore to the state government. Compared with the total dividends received over the preceding three years, the government received nearly four times the amount in a single financial year,” the statement added.

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“This new corporate structure has significantly increased the benefits accruing to the state government through the financial performance and dividends of both companies.”

“This financial contribution from both companies will play an important role not only in increasing the state’s revenue but also in supporting development-oriented and public welfare initiatives,” the statement said.

Avantika Singh, Managing Director of GEL and Vice Chairperson of GTL, presented the dividend cheques to Chief Minister Shri Bhupendra Patel in Gandhinagar on Tuesday.

Singh was quoted as saying, “For years, the company’s ability to benefit the government through dividends was significantly limited due to its legacy corporate structure. The Scheme of Arrangement has now proved decisive, unlocking the company’s true financial potential and creating an opportunity to make a stronger contribution to the State’s development and welfare initiatives.”

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Chief Secretary and Chairman of GEL and GTL, Manoj Kumar Das, described the payment of this dividend as “a historic moment for both GEL and GTL.”

Also present at the event were Energy and Petrochemicals Minister Rushikesh Patel, Minister of State Kaushik Vekariya, Chief Minister’s Principal Advisor Hasmukh Adhia, Additional Chief Secretary (Finance) T. Natarajan, Principal Secretary (Energy and Petrochemicals) Ashwini Kumar and Principal Secretary to the Chief Minister Sanjeev Kumar.