CAPTIVE POWER POLICY. BaCkGrOuNd. Section 44 of the Electricity(Supply) Act, 1948 gave birth to Captive Generation. Any other person to establish or to acquire a new generating station or to extend any major unit of plant has to take permission from SEB
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Section 44 of the Electricity(Supply) Act, 1948 gave birth to Captive Generation.
These restrictions & control on captive generation in Supply Act, 1948 is removed under Electricity Act 2003, Section 2
(8) “Captive generating plant” means a power plant set up by any person to generate electricity primarily for his own use and includes a power plant set up by any co-operative society or association of persons for generating electricity primarily for use of members of such cooperative society or association.
Captive generation is generation primarily for own use
Electicity(Amendment) Act, 2007 (26 of 2007) clearly state that it doesn’t require a licence for supplying power to a licensee or an open access consumer
Electricity generated from captive plant can be transmit through the grid to the destination.
Section 30: this provision entails the State commission to facilitate and promote transmission and inter-connection arrangement within its territorial jurisdiction for the transmission and supply of electricity by economical and efficient utilisation of electricity.
Section 63 (Determination of tariff by bidding process): It state that Central Government shall formulate guideline for transparent process of competitive bidding and tariff determined through competitive bidding by following these guideline shall be accepted by the regulatory commission.