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Legal Central Ministry of Power Electricity Act, 2003

Issuance of Electricity (Amendment) Rules, 2023

30-Jun-2023 | No. 23/18/2022-R&R

Ministry of Power has issued the Electricity (Amendment) Rules, 2023, amending provisions under the Electricity Rules, 2005, effective from 30th June, 2023.

Highlights of the amendment are:

1. Rule 3(1)(a)(i) has been revised, earlier, to qualify as a Captive Generating Plant 26% of the ownership was to be held by the captive user. Now, along with 26% ownership with the captive user, if the CGP is set up an affiliate company then, 51% of the ownership should be held by the captive user in that affiliate company.

2. After rule 4, the following rules are inserted:

4-A. Where any entity has been granted licence under Section 14 the Electricity Act, 2003, relating to Grant of Licence, the period of the licence will be in accordance with the terms and conditions of the licence granted by the Appropriate Commission.
4-B. The licencing duration is 25 years from the date the Act enters into force where an entity is deemed to be a licensee under the first, second, and fifth provisos of Section 14 of the Act.
4-C. Unless it is cancelled, the licence issued by the Appropriate Commission under Section 14 of the Act and the deemed licence under its First, Second, and Fifth Provisos are presumed to be Renewed.
Proviso, If the licence was renewed for a specific period before these Rules were announced, the renewal shall be considered to have been completed in accordance with these Rules. The licence given to gearbox developers chosen through tariff-based bidding under Section 63 of the Act will not be subject to this Rule.

For further details refer to the document attached.

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