In Brief
A power distribution company challenged a regulatory commission's approval of open access for electricity supply between two related companies (SBPIL and SBMPL). The distributor argued the consumption ratios did not match equity shareholding. The Supreme Court held that an association of corporate bodies may establish a captive power plant for joint use if: they collectively hold at least 26% equity ownership, and consume at least 51% of generated electricity annually. Consumption need not be proportionate to individual shareholding percentages. The Court affirmed the liberal statutory framework was designed to promote industrial growth and cost-effective power generation."
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