India makes it easier to set up captive power plants
The Indian government just tweaked the Electricity Rules, 2005, making it easier for companies running their own power plants (CGPs).
Announced on March 14, 2026, these changes are meant to clear up confusion about who can own these plants and help India move toward cleaner energy and smoother business operations.
Key changes in the rules
Now, ownership covers subsidiaries and holding companies, so more modern company setups are included.
CGPs will get checked every year to make sure they still qualify, but group projects can use power more flexibly without losing their status.
From April 1, 2026, State and Union Territory governments may designate a nodal agency for intra-state verification; inter-state verification will be undertaken by the National Load Despatch Centre (NLDC).
Most changes start right away; everything is fully in place by April 2026.