The Ministry of Power on March 13, 2026 issued the Electricity (Amendment) Rules, 2026 to amend the Electricity Rules, 2005 under powers granted by the Electricity Act, 2003.
The amendment substitutes Rule 3 relating to Captive Generating Plants, introducing revised definitions and compliance conditions. It clarifies that a captive user includes companies along with their subsidiaries and holding companies, and allows electricity generated by captive plants to be consumed either directly or through energy storage systems. The rules also define ownership in terms of equity shareholding and control, and recognize Special Purpose Vehicles (SPVs) established solely for owning and operating generating stations.
The amended framework reiterates that a plant will qualify as a captive generating plant only if at least 26% ownership is held by captive users and at least 51% of the electricity generated is consumed for captive use during the financial year. Additional provisions detail conditions for SPVs, associations of persons, cooperative societies, and proportional consumption requirements. The rules come into force on publication in the Official Gazette, while certain provisions will take effect from April 1, 2026.
[Notification No. G.S.R. 186(E)]
