New amendments to the group captive power scheme irk several states

These states fear loss of revenue earned through cross subsidy charges

The new amendments to the group captive scheme in power generation have been cold-shouldered by several states, including Rajasthan, Andhra Pradesh and Tamil Nadu. 

These states have opposed amendments made to the Group Captive Power Plants (or self-use power generating units) regulations. They feel that they would lose a huge amount of revenue which they earn through cross subsidy charges.

The industry, however, is critical of the opposition, saying this is restricting their business. Group captive generation allows several consumers to own and use a captive power generation unit. In May 2018, the Ministry of Power published ‘draft amendments in