Group Captive Power in Chennai Tamil Nadu


What is a Group Captive Power Scheme?

Group Captive Power Scheme in India was introduced in 2005. A group captive scheme is where someone develops a power plant for collective usage of many commercial consumers. The developer should have at least 26% of the equity and has to consume at least 51% of the power produced. The term “captive power scheme” was introduced in the Electricity Rule, 1995.

The picture below describes how a group captive power scheme will work




Advantages of Group Captive Scheme

Cheaper Price: Industrial tariffs tend to be higher and it effects the profit maximization. This                           way, industries will get cheaper rate.

Cross Subsidy: By section 42 of The Electricity Act, 2003 the consumers of captive power                              scheme are exempt from paying cross subsidy charges.

Power Cuts:  In case of a power cut, industrial consumers face heavy productivity losses                        leading to financial losses. Group captive scheme, circumvents this frustrating                        problem entirely.

State Utility: The consumers in the group captive scheme no longer need to worry about                            bureaucratic utilities.



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