CEA Issues New Circular To Streamline Captive Power Unit Verification For SPVs

The Central Electricity Authority (CEA) has released a new circular that outlines the process for identifying specific units within a generating station meant for captive use. The directive, issued on September 10, 2025, is targeted at Special Purpose Vehicles (SPVs) that own generating stations and is based on the “Procedure for verification of captive status” released earlier on February 10, 2025, with the approval of the central government. This procedure applies in cases where a captive generating plant and its users are located across multiple states, making it necessary to follow a uniform approach to verification.

The circular draws authority from Rule 3(1)(b) of the Electricity Rules 2005 and Paragraph 6.8(i) of the captive procedure. It makes it mandatory for any generating station owned by an SPV, where certain units are designated for captive use, to notify the concerned authorities. These include the Verifying Authority, the distribution licensee in whose jurisdiction the captive users fall, and the Regional Load Despatch Centre (RLDC) or the State Load Despatch Centre (SLDC), depending on the connection of the plant. This step has been made a prerequisite for initiating the verification of captive status.

For the financial year 2025-26, all SPV-owned generating stations intending to claim captive status must submit the details of the units identified for captive use. To standardize this process, the circular includes a prescribed format for providing information. The required details cover both plant-specific and user-related aspects. For the plant, the format asks for the name and address of the Captive Generating Plant (CGP) and the SPV that owns it, the type of power plant, such as thermal, hydro, or renewable, the total installed capacity in megawatts, and whether the plant includes energy storage systems. The connectivity details must also be provided, specifying whether the generating station is connected to a Central Transmission Utility (CTU) or State Transmission Utility (STU), along with the voltage level and the substation name.

Equally important is the information related to captive users. The circular requires disclosure of the names and details of the distribution companies (Discoms) within whose jurisdiction these users are located. It also insists on a clear listing of the specific units within the generating station that are earmarked for captive use. For each identified unit, its name or number and its respective capacity in megawatts must be mentioned. The CEA has emphasized that authenticated generation data from these identified units will be essential to complete the verification of captive status.

By issuing this directive, the CEA aims to streamline the entire process of verifying captive status for SPV-owned power plants. Earlier, there were challenges in dealing with plants spread across multiple states, especially in terms of identifying which units were being used for captive consumption and how the related data was being shared with the authorities. The new circular addresses this issue by creating a standardized framework and ensuring that all relevant parties are formally informed at the outset.

This move is expected to improve transparency, strengthen regulatory compliance, and provide a uniform system for handling captive power cases. With the new requirement of unit-wise details and authenticated generation data, the verification process will become clearer and more reliable. The directive ultimately ensures that SPV-owned generating stations comply with the legal framework and that their captive status is verified efficiently and transparently.