According to media sources, the Government of India has notified the Electricity (Amendment) Rules, 2026, amending Rule 3 of the Electricity Rules, 2005 relating to Captive Generating Plants (CGPs) to remove interpretational ambiguities, improve ease of doing business, and align with India’s energy transition and industrial growth objectives. Captive power generation under the Electricity Act, 2003 has been key for reliable, cost-effective electricity supply to industries, mitigating supply constraints and cost volatility while supporting non-fossil fuel adoption for sustainability. The amendments clarify ownership to include subsidiaries and holding companies, establish uniform verification for the entire financial year, and provide flexibility for Association of Persons (AoP) structures where excess consumption by members won’t disqualify captive status.
According to media reports, key features include nodal agencies for verification from April 1, 2026 (State/UT for intra-state, NLDC for inter-state), grievance redressal committees, and no cross-subsidy or additional surcharges pending verification if declarations are submitted, with carrying costs applied later if status fails. For AoP, users draw power per operational needs, 26%+ ownership entities get full captive treatment, and proportionate consumption treats group entities as one. These reforms promote industrial competitiveness, reduce transmission losses, encourage clean energy investment, and support Viksit Bharat@2047, finalized after stakeholder consultations.
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