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Captive status structuring & annual verification — documents, timeline & process
R1 · Pre-development approvals · ~30 days (indicative)
To escape cross-subsidy and additional surcharges, captive users must hold ≥26% equity and consume ≥51% of generation annually — verified every year, with full back-charges if you fail.
SPV/AoP structuring → shareholding lock → annual verification filing → retroactive confirmation.
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Statutory basis & authority
| Statutory basis | Rule 3, Electricity Rules 2005; SC Dakshin Gujarat (2023): proportional consumption ±10% per shareholder |
|---|---|
| Authority | State nodal (SLDC/discom-appointed) intra-state; NLDC inter-state (CEA verification procedure Feb-2025) |
| Department | State nodal / NLDC |
| Indicative timeline | ~30 days (verify with the authority) |
| Fees | Advisory / filing costs |
Documents required
- Shareholding registers
- Energy accounts
- CA certificates
When is this required?
- Captive structuring advisory: Business model: captive (own use)
Solarian expert note
Structure the SPV before financial closure — failure at annual verification means full CSS recovery for the year.
Frequently asked questions
What is Captive status structuring & annual verification?
To escape cross-subsidy and additional surcharges, captive users must hold ≥26% equity and consume ≥51% of generation annually — verified every year, with full back-charges if you fail.
How long does Captive status structuring & annual verification take?
Around 30 days as an indicative planning figure. Actual timelines vary by authority workload and application quality — verify with the concerned authority.
Which authority grants Captive status structuring & annual verification?
State nodal (SLDC/discom-appointed) intra-state; NLDC inter-state (CEA verification procedure Feb-2025). Department: State nodal / NLDC.
What documents are required for Captive status structuring & annual verification?
Shareholding registers; Energy accounts; CA certificates.
When is Captive status structuring & annual verification required?
Business model: captive (own use).
Related approvals in this phase
- ISTS connectivity & GNA (General Network Access)
- STU connectivity & evacuation approval
- Discom feasibility approval & registration
- Net-metering / interconnection agreement
See also: all approvals · glossary of terms · state roadmaps
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Indicative guidance from the RegNav knowledge base, expert-verified by Solarian. Not legal advice — always verify with the concerned authority.