A sweeping restructuring of the GSPC Group has officially come into force, reshaping Gujarat’s energy landscape and setting the stage for a more integrated and focused business structure.
In a stock exchange filing, Gujarat Gas Limited (GGL)—India’s largest city gas distribution company—confirmed that its long-awaited Scheme of Arrangement became effective on May 1, 2026, following final approval from the Ministry of Corporate Affairs on April 17.
The move merges Gujarat State Petroleum Corporation (GSPC) and Gujarat State Petronet Limited (GSPL) into GGL, while carving out the gas transmission business into a newly formed entity, GSPL Transmission Limited (GTL). The restructuring, first announced in August 2024, had received strong backing from investors, proxy advisors, and shareholders.
With the consolidation complete, GGL is transforming into a diversified energy powerhouse, expanding beyond city gas distribution into gas trading, exploration and production, and renewable energy. Reflecting its broader mandate, the company will soon be renamed Gujarat Energy Limited.
The overhaul also gives GGL stakes in a range of energy and infrastructure ventures, including gas-based power generation, LNG terminals, city gas distribution, and IT-enabled services.
At the same time, GTL emerges as a standalone, pure-play gas transmission company, controlling nearly 2,800 km of pipeline infrastructure in Gujarat and holding interests in major cross-country pipeline projects. The company is expected to be listed on both the BSE and NSE in the near future.
A company official described the development as a turning point: “This is a very significant moment in Gujarat’s energy sector scenario. The Scheme will strengthen Gujarat’s energy sector by implementing the farsighted and visionary decision of the Government of Gujarat taken way back in 2024.
"The timing could not have been more opportune since the GGL will now have access to a large gas trading portfolio strengthening its CGD Business at a time when GGL is enthusiastically undertaking Domestic PNG Penetration Drive in line with the Government’s vision of making Gujarat an LPG Free Zone. Simultaneously, GTL will also be able to pursue its pure-play transmission business with better focus and efficiency.”
Under the scheme, shareholders will see a structured share swap, with record dates beginning May 12, 2026. Post-allotment, the Government of Gujarat is expected to retain a significant controlling stake—nearly 39% directly and about 56% including affiliated entities—in both GGL and GTL.
The restructuring aims to streamline the group’s complex holding structure, unlock shareholder value, and align with regulatory requirements mandating an independent gas transmission entity.
With execution now underway, the GSPC Group’s ambitious overhaul is poised to deliver on its promise of scale, efficiency, and sharper strategic focus across Gujarat’s energy sector.
