The government has amended the Electricity Rules to strengthen the captive power framework and support industrial competitiveness. The Ministry of Power has announced that the Electricity (Amendment) Rules, 2026, have been introduced to provide greater clarity and flexibility in the framework governing captive power plants, amending Rule 3 of the Electricity Rules, 2005.
The amendments aim to remove ambiguities in interpretation, improve the ease of doing business for industry, and align the captive generation framework with India's objectives of energy transition and industrial growth. It seeks to provide clarity in the implementation of captive generation provisions while maintaining the statutory safeguards relating to ownership and consumption. The Ministry further stated that by enabling industries to access reliable and cost-competitive electricity through captive generation, the reforms will strengthen industrial competitiveness and support the country's transition towards a sustainable energy future.