Electricity (Amendment) Rules, 2026 — captive generation
The Ministry of Power has updated the captive generation rules. The 26% ownership and 51% consumption tests stay, but group captives get more flexibility and verification is reassigned.
Why it matters. Reduces the risk of a captive plant losing its status, and with it its surcharge exemptions, over technicalities.
What changes
- Thresholds unchanged: at least 26% ownership and 51% consumption by captive users.
- More flexibility for group captive users on proportional consumption.
- Captive consumption checked against aggregate generation of the designated units.
- Shareholding measured as a weighted average across the financial year.
- Subsidiaries and holding companies treated as a single captive user.
- Verification by a state nodal agency for intra-state cases and by NLDC for multi-state cases.
Who is affected
Captive generators · Group captive users · Industrial consumers · State nodal agencies · NLDC
Sources
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