Gujarat Gas Limited (GGL) has announced that the Scheme of Arrangement involving the GSPC Group has come into effect from May 1, 2026, following regulatory approvals. The company had earlier received the final sanction from the Ministry of Corporate Affairs on April 17, 2026.
With the scheme now operational, Gujarat State Petroleum Corporation (GSPC) and Gujarat State Petronet Limited (GSPL) have been merged into GGL. At the same time, the gas transmission business has been carved out into a separate entity, GSPL Transmission Limited (GTL), creating a more focused structure for both businesses.
The restructuring marks a significant step in consolidating operations across the group. GGL is set to expand beyond its core city gas distribution operations and evolve into a diversified energy company with interests spanning gas trading, exploration and production, and wind power generation. Reflecting its broader business scope, the company will soon be renamed Gujarat Energy Limited.
In addition to its primary operations, GGL will now hold investments across multiple segments, including gas-based power generation, LNG infrastructure, city gas distribution through joint ventures, and information technology-enabled services. The move is expected to strengthen its position across the energy value chain and improve operational synergies.
Meanwhile, the demerger of the gas transmission business into GTL will allow the new entity to operate as a dedicated transmission company. GTL will manage an extensive pipeline network of nearly 2,800 kilometres in Gujarat and maintain stakes in cross-country pipeline projects. The company is also expected to be listed on stock exchanges in due course.
The restructuring follows its announcement in August 2024 and subsequent approvals from shareholders in October 2025. Proxy advisory firms had supported the proposal, and the market responded positively during the announcement phase.
A company source described the development as a milestone for Gujarat’s energy sector, noting that the reorganisation aligns with the state government’s long-term vision. The expanded structure is expected to support growth in gas trading and distribution, particularly as the company advances its domestic PNG expansion efforts.
As part of the scheme, May 12, 2026, has been fixed as the record date for the allotment of shares by GGL to shareholders of GSPC and GSPL. Shareholders will receive equity shares based on approved exchange ratios. Additionally, shareholders of GGL will be allotted shares in GTL following the demerger, with the record date to be announced separately. Post restructuring, the Government of Gujarat will hold a significant stake in both GGL and GTL, along with other state-controlled entities, while public shareholders will continue to hold the remaining equity.
