Synopsis: Two Gujarat-based power infrastructure stocks are in focus after the state approved a Rs. 500 crore Wire-Free City Mission to shift overhead power lines underground, creating potential opportunities in power cabling, distribution infrastructure, and EPC projects.
The Gujarat government has approved a Rs. 500 crore Wire-Free City Mission aimed at modernizing urban power infrastructure by shifting overhead electricity lines underground across cities and municipalities. The initiative is expected to improve power reliability, enhance public safety, and create opportunities for companies involved in power cables, electrical equipment, and distribution infrastructure.
In addition, the state has established India’s first dedicated Service Commissionerate to promote investments and employment in service sectors such as IT and tourism. The combined focus on infrastructure development and economic growth has brought several Gujarat-based power infrastructure companies into the spotlight.
Gujarat Cabinet Approves Major Urban Infrastructure Push
The Gujarat Cabinet, chaired by Chief Minister Bhupendra Patel, has officially approved the “Gujarat Wire-Free City Mission.” This ambitious urban modernisation project aims to systematically remove overhead electricity networks across the state’s urban centers.
For the first phase of this mission, the government has allocated an initial budget of Rs. 500 crore, signaling a major commitment to transforming and modernising the state’s power distribution infrastructure.
Infrastructure and Safety Upgrades
The large-scale initiative will target all 17 municipal corporations and 151 municipalities across Gujarat, transitioning existing overhead power lines underground using a phased implementation strategy. The massive undertaking involves moving approximately 14,600 circuit kilometers of high-tension power lines and 31,400 circuit kilometers of low-tension distribution networks.
Beyond improving the visual aesthetics of urban skylines, shifting the infrastructure underground is expected to significantly reduce instances of short circuits, wire snapping, and power disruptions that typically occur during extreme weather conditions like heavy monsoon rains and storms.
India’s First Service Commissionerate
In a parallel policy decision, the Cabinet cleared the establishment of the country’s first-of-its-kind Service Commissionerate. Mirroring the success that Industrial Commissionerates have historically had in manufacturing and industrial growth, this dedicated body will focus exclusively on the development of the services sector.
It will provide a structured institutional framework to assist with policy formulation, attract investments, and offer sector-specific support to emerging fields such as tourism, information technology, and policy-driven services.
Diamond Power Infrastructure Ltd
Diamond Power Infrastructure is in focus due to Gujarat’s Rs. 500 crore Wire-Free City project, which requires extensive underground power cabling. As a Gujarat-based manufacturer of power cables and conductors, the company could benefit if it secures supply contracts during the project’s rollout.
With a market capitalisation of Rs. 10,344 cr, the shares of Diamond Power Infrastructure Ltd were trading at Rs. 196.30 per share, down from its previous close of Rs. 197.10 per share.
Parth Electricals & Engineering Ltd
Parth Electricals is attracting attention as the project involves power distribution upgrades, substations, and underground cabling work. Being headquartered in Gujarat and operating in electrical infrastructure and EPC services, the company could benefit from potential contract opportunities under the initiative.
With a market capitalisation of Rs. 583 cr, the shares of Parth Electricals & Engineering Ltd were trading at Rs. 427.10 per share, from its previous close of Rs. 427.10 per share.
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