Requirement of Captive / Group Captive Generating Plant as notified by GoI

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(1) No power plant shall qualify as a ‘Captive Generating Plant’ under section 9
read with clause (8) of section 2 of the Act unless –
a. In case of a power plant –
i.  not less than twenty six percent of the ownership is held by the captive user(s) and
ii. not less than fifty one percent of the aggregate electricity generated in such plant, determined on an annual basis, is consumed for the captive use:
Provided that in case of power plant set up by registered cooperative society, the conditions mentioned under paragraphs at (i) and (ii) above shall be satisfied collectively by the members of the co-operative society:

Provided further that in case of association of persons, the captive user(s) shall hold not less than twenty six percent of the ownership of the plant in aggregate and such captive user(s) shall consume not less than fifty one percent of the electricity generated, determined on an annual basis, in proportion to their shares in ownership of the power plant within a variation not exceeding ten percent;

b. In case of a generating station owned by a company formed as special purpose vehicle for such generating station, a unit or units of such identified for captive use and not the entire generating station satisfy (s) the conditions contained in paragraph (i) and (ii) of sub-clause (a) above including –

Explanation: –

(1) The electricity required to be consumed by captive users shall be determined with reference to such generating unit or units in aggregate identified for captive use and not with reference to generating station as a whole; and
(2) The equity shares to be held by the captive user(s) in the generating station shall not be less than twenty six percent of the proportionate of the equity of the company related to the generating unit or units identified as the captive generating plant.
2. It shall be the obligation of the captive users to ensure that the consumption by the Captive Users at the percentages mentioned in sub-clauses (a) and (b) of sub-rule (1) above is maintained and in case the minimum percentage of captive use is not compiled with in any year, the entire electricity generated shall be treated as if it is a supply of electricity by a generating company.


Source: TNERC

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