Captive unit

A captive unit is a business unit of a company functioning offshore as an entity of its own while retaining the work and close operational tie ups within the parent company.^[1]

Captive unit is one way of establishing presence in cheap labour markets such as China and India rather than outsourcing work to third party companies established offshore.^[2]

Captive Generating plant means a power plant set up by any person to generate electricity primarily for his or her own use and includes a power plant set up by any co-operative society or association of persons for generating electricity primarily for use of members of such co-operative society or association. Note that the word primarily is not defined anywhere. Also note that by this definition, a group of industries can set up a big generating station for their groups use and sell excess power.