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GIPCL leverages renewable energy push for robust growth

BusinessGIPCL leverages renewable energy push for robust growth

Headquartered in Vadodara, the Gujarat Industries Power Company Limited (GIPCL) has been a significant player in the electrical power generation sector since its inception in 1985. The company was established under the guidance of the Government of Gujarat and promoted by notable Gujarat PSUs including the Gujarat State Fertilisers & Chemicals Ltd., Gujarat Urja Vikas Nigam Ltd., and Gujarat Alkalies and Chemicals Ltd.

As of now, GIPCL boasts an impressive installed generation capacity of 1184 MW, fostered through a diversified portfolio that spans thermal (gas and lignite), wind, and solar power plants situated across Gujarat. The company’s journey began with the commissioning of a 145 MW gas-based combined cycle power plant in Vadodara in 1992, a venture that showcased an innovative approach to group captive power plant creation with the support of state power utilities and various industries.

GIPCL continued to expand its operations, inaugurating a 165 MW dual-fuel combined cycle power plant in Baroda in 1997, operating as an Independent Power Producer (IPP) with a long-term Power Purchase Agreement (PPA) with GUVNL spanning 20 years. This was followed by the initiation of a greenfield project utilising environmentally friendly CFBC technology in Surat in 1999, which has a 30-year PPA with GUVNL.

The commitment to renewable energy became a pivotal focus for GIPCL, aligning with the directions of both the Government of Gujarat and the Government of India. Currently, the company is working rigorously to seize opportunities in the renewable energy sector, aiming to bolster its footprint in solar, wind, and hybrid power generation. A testament to its ambitions, GIPCL has secured land to develop a 2375 MW renewable energy park in the Kutch district of Gujarat.

Financially, GIPCL is on strong ground with its renewable capacity nearing Rs 375 crores, boasting an internal rate of return (IRR) of about 12%, and a profit before tax of around Rs 85 crores. Despite a considerable debt of Rs 3000 crores as of FY 2025, the management assures that with a sustained focus on timely project completion and a strategic approach to debt management, the company’s profitability is set to grow.

In the stock market, GIPCL is showing promising signs, currently priced at Rs 140 per share. Analysts remain optimistic about its prospects, encouraging conservative investors to consider GIPCL for steady returns over a medium-term horizon, anticipating a rise in share values in the coming year, driven by the company’s solid investment in renewable projects and a strong push towards enhancing its renewable energy footprint.

(Note: The article has been structured to provide a smooth flow of the timeline and achievements of GIPCL. It maintains a positive tone highlighting the company’s growth, financial stability, and future prospects, encouraging potential investors to view GIPCL as a stable investment.)

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