The Government has amended the Electricity Rules to strengthen the captive power framework and support industrial competitiveness. The Ministry of Power informed 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 interpretational ambiguities, improve ease of doing business for industry, and align the captive generation framework with India’s energy transition and industrial growth objectives. 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 said 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.