Power Ministry invites feedback on draft amendments to CGP rules

The Ministry of Power has issued draft amendments to the Electricity Rules, 2005, relating to the criteria for classification of Captive Generating Plants (CGPs). Stakeholder comments have been invited by 22 October 2025.

In a circular dated 23 September 2025, the ministry circulated the draft notification to government departments, regulators, public sector entities, power producers, and industry associations.  

The draft focuses on revisions to Rule 3, which sets the conditions for a plant to be recognised as a CGP under the Electricity Act, 2003. It requires captive users to hold at least 26 per cent ownership and consume a minimum of 51 per cent of the annual electricity generated. Separate provisions have been proposed for projects owned by cooperative societies and associations of persons.

For generating stations under a Special Purpose Vehicle (SPV), the draft allows a specific unit to be designated as the CGP. Ownership and consumption requirements would then apply proportionally to that unit.

The draft clarifies definitions for “annual basis,” “captive user,” and “ownership.” It also recognises consumption through an Energy Storage System or by a holding or subsidiary company as valid for meeting the captive use condition.

Verification of captive status in cases where plants and users are located in different states will be carried out by the Central Electricity Authority.