APERC lifts curbs on captive power plants

There is no need to obtain any consent from the government for installing captive power plants or generators of any capacity henceforth.

Announcing this here today, the Andhra Pradesh Electricity Regulatory Commission(APERC) said that this was in line with the provisions of the new central electricity act which had come into force from 10, July, 2003.

The provisions came into force from 10, December, 2003, exactly six months after the enactment of the new law is envisaged. The act removes all the restrictions with regard to setting up of captive power units and generators which are in force in the state.

It may be recalled that the state government had in the past imposed certain restrictions on captive generation to protect APTransco, which is totally dependent on HT sales for its revenue and cross subsidisation.

"All those who had already set up captive power plants and had valid permission upto or beyond September 9, 2003 are not required to seek renewal of permission," APERC clarified in a press release. The regulator said that all the consumers were now at liberty to establish their own captive power plants of any capacity.