Revises certain provisions in the existing electricity regulations through Amendments to modify Rule 3 of Electricity Rules, 2005, for captive power plants to clarify ownership norms, enhance verification mechanisms, and provide greater operational flexibility for industrial users.
Ownership now includes subsidiaries, holding companies, and sister companies of holding entities establishing captive plants.
Group captive projects through association of persons structures gain flexibility. Users can draw power according to operational needs if overall ownership and consumption conditions are met Individual excess consumption won’t disqualify entire projects. State governments will designate nodal agencies for the purpose of intra state verification.
Changes target industries investing in non-fossil captive projects for sustainability mandates and cost reduction. Simplified compliance aims to accelerate renewable captive generation deployment.
