PowerDocket
MoP · Final rules · 13 March 2026 · G.S.R. 186(E), 13 Mar 2026

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

  1. Thresholds unchanged: at least 26% ownership and 51% consumption by captive users.
  2. More flexibility for group captive users on proportional consumption.
  3. Captive consumption checked against aggregate generation of the designated units.
  4. Shareholding measured as a weighted average across the financial year.
  5. Subsidiaries and holding companies treated as a single captive user.
  6. 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

Official notification G.S.R. 186(E) of 13 Mar 2026; PIB release linked. Gazette copy to be added.

Sources

Last checked 11 October 2026. Summary for information; rely on the official gazette text.

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