Gaurav Kawatra

Ministry of Power
has notified
Electricity
(Amendment) Rules,
2023 vide dated
30-Jun-2023.
Gaurav Kawatra

Amendments to Rule 3:
Requirements of
Captive Generating
Plant
Gaurav Kawatra

Earlier, to qualify as a
“Captive Generating Plant”
(‘CGP’)
26% of the ownership
was to be held
by the captive user.
Gaurav Kawatra

Now, along with 26%

ownership with the captive
user, if the CGP is set up by
an affiliate company then,
51% of the ownership
should be held by the
captive user in that affiliate
company
Gaurav Kawatra

The captive user

refers to the end
user of electricity
generated.
Gaurav Kawatra

Additionally, if a
subsidiary company of an
existing captive user
consumes the electricity,
it is also considered
captive consumption.
Gaurav Kawatra

New Rules Inserted

after Rule 4 for grant
of license under
Section 14 of the
Electricity Act, 2003
Gaurav Kawatra

4-A:
If an entity is granted a license
under Section 14 of the
Electricity Act, 2003, the
duration of the license will be
determined by the terms and
conditions specified in the
license granted by the
Appropriate Commission.
Gaurav Kawatra

4-B:
If an entity is considered a
deemed licensee under certain
provisions of Section 14 of the
Act, the license will be valid for
25 years from the date when the
Act came into effect.
Gaurav Kawatra

4-C:
Licenses granted by the
Appropriate Commission under
Section 14 of the Act, as well as
licenses deemed under specific
provisions of Section 14, will be
automatically renewed unless
they are revoked.
Gaurav Kawatra

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