The Power generation policy-2009 announced by Gujarat government. It is aimed at encouraging private participation, promoting efficient and environment-friendly technologies in power generation and ensuring competitiveness in the power sector.

The aims and objectives of this policy are: to develop the state of Gujarat as a power generation hub; to have adequate availability of power in the state for agriculture, households, industry, etc.; to ensure effective and efficient utilization of conventional fuels by the power generation industry; to build power generation capacity to encourage competition for procurement of electricity by state utility/distribution licenses; and to encourage environment friendly and efficient power generation technologies.