The company is involved in electricity sub-transmission distribution and retail supply in the State of Gujarat or outside the State. Their mandate is to establish and use a power system network and to buy and sell electrical energy, and to collect information with an eye towards further system improvements.
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The Gujarat Electricity Industry (Re-Organization & Regulation) Act 2003 paved the way for comprehensive reform and restructuring of the State Electricity Board with an aim to restructure the Electricity Industry in a manner that will ensure the long term viability and sustainability of the power sector in the state. As a part of the reform process, the GEB was disaggregated into several autonomous entities.
The Electricity Act 2003 introduced competition by way of open access in the transmission and distribution of electricity. The Act also provided for reorganization of the Electricity Boards through appropriate transfer schemes being formulated by the state governments. The Government of Gujarat reorganized the GEB functionally into a Generation Company, a Transmission Company and four Distribution Companies. Thereby Madhya Gujarat Vij Company Limited became functional on 1 April 2005.
