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ARTICLE · 06 JULY 2021

Special Purpose Vehicles Cannot Be Equated With ‘Association Of Persons' For Verifying Captive Status

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On 07.06.2021, the Appellate Tribunal for Electricity (APTEL) passed its judgment (Judgment) in Appeal No.131 of 2020: Tamil Nadu Power Producers Association vs. Tamil Nadu Electricity Regulatory Commission.

IndiaEnergy and Natural Resources
Divya Chaturvedi
Divya Chaturvedi
Saransh Shaw
Saransh Shaw
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Introduction

On 07.06.2021, the Appellate Tribunal for Electricity (APTEL) passed its judgment (Judgment) in Appeal No.131 of 2020: Tamil Nadu Power Producers Association vs. Tamil Nadu Electricity Regulatory Commission. APTEL vide the Judgment (uploaded on the website of APTEL on 11.06.2021), has settled various issues pertaining to verification of captive status of a Captive Generation Plant (CGP) under the Electricity Rules, 2005 (Rules).

For captive users to enjoy their captive status and the allied benefits, 2 (two) conditions have to be met in terms of Rule 3(1)(a)(i) and (ii) of the Rules:

  1. captive users to hold 26% equity shares in the financial year; and
  2. captive users ought to have consumed at least 51% of the aggregate electricity generated.

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