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ARTICLE · 16 OCTOBER 2025

Reading The Fine Print: What The Draft Amendment To Electricity Rules, 2005 Mean For Captive Users

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The law relating to captive power has long invited interpretative debate. Over time, they have evolved in response to market trends, regulatory experience, and technological shifts.

IndiaEnergy and Natural Resources
Aditya Vikram Jalan
Aditya Vikram Jalan
Ankitesh Ojha
Ankitesh Ojha
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Background

The law relating to captive power has long invited interpretative debate. Over time, they have evolved in response to market trends, regulatory experience, and technological shifts. The recently published draft Electricity (Second Amendment) Rules, 2025 ("Draft Amendment") issued by the Ministry of Power ("MoP") aim at further relaxing the eligibility criteria for Captive Generating Plants ("CGPs"). Stakeholder comments have been invited on the Draft Amendment by October 22, 2025. This Draft Amendment has been proposed at an opportune time when many businesses are turning to captive models as part of their energy procurement strategy. It may be crucial to understand how this Draft Amendment if implemented, may impact the considerations being placed by such businesses.

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