What counts as ownership of a captive plant: shares, or control as well?
Rule 3(1)(d) defines ownership as proprietary interest and control, or equity share capital carrying voting rights, held directly or through a subsidiary, the holding company, or that holding company's other subsidiaries. Captive users must hold not less than 26% of it.
The definition
Rule 3(1)(d): "ownership", in relation to a generating station or power plant set up by any person, "shall mean proprietary interest and control, or equity share capital carrying voting rights, held either directly or through its subsidiary or subsidiaries, its holding company, and any other subsidiary or subsidiaries of such holding company".
What follows from it
- Plant holdings kept through the person's subsidiary, its holding company or that holding company's other subsidiaries count toward the 26%.
- The definition names proprietary interest and control as well as voting equity, joined by "or". How an agency tests that limb is not in the rules.
- "Subsidiary company" and "holding company" have the meaning in clauses (87) and (46) of section 2 of the Companies Act, 2013.
The test it feeds
Rule 3(2)(a)(i): not less than twenty-six per cent of the ownership is held by the captive user(s), alongside the 51% consumption test.
Example: holding through a subsidiary
- A company holds 15% of a plant's equity directly and its subsidiary holds 11%
- Held directly or through its subsidiary: 15 + 11 = 26%, which is not less than 26%
- A 25% total would fall short
An example. The 26% and the definition are the rules' own.
What Senseible does here
Senseible reads electricity bills into monthly records. It does not test captive status or work out the limits.
- Parent and subsidiaries as one captive user
- Captive plant fails the 51% test
- Group captive rules for solar
- Group captive solar and Scope 2
- Free carbon calculators
Last reviewed 2026-11-05. Rule 3 of the Electricity Rules, 2005 as substituted by G.S.R. 186(E), 13 March 2026; parts in force from 1 April 2026. Checked 5 November 2026. Check the state nodal agency's or the National Load Despatch Centre's procedure before you file.