Surat: Gujarat’s electricity distribution companies (discoms) have seen their profits grow manyfold in the past two financial years. The profit of Dakshin Gujarat Vij Company Ltd (DGVCL) grew almost 28 times, from Rs 76 crore in 2022-23 to Rs 1,966 crore in 2023-24 and Rs 1,610 crore in 2024-25. Uttar Gujarat Vij Company Ltd (UGVCL) saw its profit increase 28 times in 2023-24, while Paschim GVCL profit grew 54 times. Top officials say the cost of power for discoms has fallen, resulting in increasing profits. There has been significant growth in solar power generation, while the cost of imported coal used for power generation also reduced. The cost of solar power is about Rs 1 less than conventional power and top officials say it is likely to fall further. Discoms buy power from Gujarat Urja Vikas Nigam Ltd and lower power costs benefitted all the state’s discoms. “The lower cost of power purchased, specifically solar power, operational efficiency and better financial management led to growing profits. On the other hand, discoms are passing on benefits to customers by reducing charges and improving infrastructure,” a top GUVNL official said. DGVCL witnessed a significant increase in its number of industrial customers, which benefitted it in two ways. The cost of power is going down while the volume and charges from industrial customers are higher than residential customers. Further, the growing solar power infrastructure in the state is resulting in growing green power production. “With the low solar power cost, there is a drop in the price of coal. Simultaneously, electricity prices were recently reduced by over Rs 1 per unit for consumers,” said Yogesh Choudhary, MD of DGVCL. “DGVCL is investing in infrastructure for improved services and better quality of supply,” Choudhary added.
