Court Upholds Rs 18.87 Crore Depreciation Claim
The Rajasthan High Court has upheld Hindustan Zinc Limited's Rs 18.87 crore additional depreciation claim on its captive power plant, as reported by LiveLawBiz on 17 October 2026. The ruling confirms the company's entitlement to the depreciation benefit, though no further details of the court's reasoning or the specific plant involved were available from the published headline.
| Detail | Information |
|---|---|
| Company | Hindustan Zinc Limited |
| Forum | Rajasthan High Court |
| Claim Value | Rs 18.87 crore |
| Nature of Claim | Additional depreciation on captive power plant |
| Outcome | Upheld in favour of Hindustan Zinc |
| Reported | 17 October 2026 (LiveLawBiz) |
Significance for Captive Power Taxation
The ruling is notable for industrial captive power operators, as it affirms the availability of additional depreciation on power plant assets. Captive power plants are capital-intensive assets, and depreciation treatment directly affects the tax position and effective capital cost for industrial companies that build and operate their own generation capacity. The decision relates specifically to Hindustan Zinc's plant; its applicability to other operators would depend on individual circumstances and is not addressed in the available reporting.
Captive Power Pipeline Across India
The ruling comes at a time when captive power projects in India represent a large and active investment pipeline. Projects India tracks 2,445 captive power projects nationally, with 25 added to its database in the last 90 days.
Of the tracked projects, 1,050 are currently at the Under Approvals stage, representing the largest single cohort and the broadest near-term opportunity for suppliers and contractors seeking early engagement. A further 280 projects are at Construction Started stage, while 155 have received approvals and are approaching construction readiness. Against that activity, 283 projects are currently on hold and 82 have been cancelled, underscoring that not all announced schemes proceed.
Recent additions to the tracked pipeline include a Rs 12,000 crore captive power project by National Aluminium Company Limited at Angul, Odisha, currently under approvals, and a Rs 600 crore captive power plant by Woodpecker Greenagri Nutrients Private Limited at Khemsepur, Uttar Pradesh, where construction has started. Other projects under approvals include a Rs 311 crore steam and co-generation plant in Una, Himachal Pradesh, promoted by Himachal Pradesh Bulk Drug Park Infrastructure Limited, and a Rs 175 crore captive power plant at Osmanabad, Maharashtra, promoted by Manjra Sugar Industries Private Limited. For broader context on power sector activity, see the power projects sector overview.
Geographic Spread of Tracked Projects
Maharashtra leads the geographic distribution with 407 tracked captive power projects, followed by Karnataka with 301 and Chhattisgarh with 300. Uttar Pradesh accounts for 201 projects, Andhra Pradesh for 153 and Odisha for 145. This distribution reflects the concentration of large industrial consumers — steel, cement, sugar, aluminium and chemical manufacturers — that have historically driven captive power investment in these states.
Related recent activity in the sector includes construction beginning on a 420 MWp captive solar plant in Gujarat by Oriano Clean Energy, and the formation of a joint venture between NLC India and NALCO for a 1,080 MW captive power plant, illustrating the scale of new capacity being pursued alongside the judicial and regulatory questions that established plants continue to navigate.
What this means for suppliers and contractors
The Rajasthan High Court's ruling has limited direct procurement implications but is relevant background for suppliers and contractors engaged with industrial captive power operators. A favourable depreciation outcome improves the post-tax economics of captive plant ownership, which can support decisions to invest in capacity expansion or replacement. Companies that have faced similar tax disputes may revisit their depreciation positions in light of the judgment.
More immediately, the active pipeline data points to where commercial opportunities are concentrating. With over 1,000 projects at the Under Approvals stage, suppliers of boilers, turbines, transformers, switchgear and balance-of-plant equipment should focus engagement on this cohort, as approvals receipt typically triggers procurement activity within months. Maharashtra, Karnataka and Chhattisgarh together account for over 1,000 tracked projects and represent the densest markets for captive power supply chains. The 280 projects already at Construction Started stage represent near-term demand for construction materials, civil contractors and equipment installation specialists.
Frequently asked questions
What did the Rajasthan High Court decide in the Hindustan Zinc captive power case?
The Rajasthan High Court upheld Hindustan Zinc's Rs 18.87 crore additional depreciation claim on its captive power plant. The ruling was reported by LiveLawBiz on 17 October 2026. No further details of the court's reasoning were available from the published headline.
How many captive power projects are active in India?
Projects India tracks 2,445 captive power projects across India, with 25 added in the last 90 days. Of these, 1,050 are under approvals, 280 are at construction started stage, and 155 have approvals received, indicating a large near-term pipeline.
Which states have the most captive power projects in India?
Maharashtra leads with 407 tracked captive power projects, followed by Karnataka with 301, Chhattisgarh with 300, Uttar Pradesh with 201, Andhra Pradesh with 153, and Odisha with 145, according to Projects India data.
