Surat: The state-run electricity distribution companies (discoms) in Gujarat have reported a sharp surge in profits over the past two financial years, driven largely by lower power procurement costs and the rapid expansion of solar energy.

Dakshin Gujarat Vij Company Ltd (DGVCL) recorded one of the most dramatic turnarounds, with its profit rising nearly 28 times, from Rs 76 crore in 2022–23 to Rs 1,966 crore in 2023–24, before settling at Rs 1,610 crore in 2024–25.

Uttar Gujarat Vij Company Ltd (UGVCL) also registered a 28-fold jump in profit in 2023–24, while Paschim Gujarat Vij Company Ltd (PGVCL) posted a 54-times increase during the same period.

Senior officials attributed the strong financial performance primarily to the declining cost of power. The growing contribution of solar power generation and a reduction in imported coal prices have significantly lowered electricity procurement expenses. Solar power is currently priced at nearly Rs 1 per unit cheaper than conventional sources, and officials expect costs to decline further.

Discoms procure electricity through Gujarat Urja Vikas Nigam Ltd (GUVNL), and the reduced purchase cost has benefited all power distribution companies in the state.

DGVCL has also benefited from a substantial rise in industrial consumers. Officials noted that industrial users contribute higher electricity volumes and tariffs compared to residential customers, further strengthening revenues. DeshGujarat