In India, historically cross-subsidies have been levied against industrial consumers sometimes resulting in very high tariffs thus rendering the industrial units uneconomical. It was to get over this cost barrier in industries which were electricity intensive, that captive power plants or co-generation plants were installed by the industries for their own use. In India therefore, on an aggregate basis there is a large amount of electricity generation capacity that is tied up in such captive power plants which can be utilised to reduce the widening gap between the supply and demand of electricity.

PTC intends to source power from these captive power plants to supply to industrial consumers or bulk consumers in the same geographical region.