PM eBus Sewa Payment Security Mechanism scheme for Procurement and Operation of Electric Buses

REGD. No. D. L.-33004/99 The Gazette of India CG-DL-E-28102024-258294 EXTRAORDINARY PART II-Section 3-Sub-section (ii) PUBLISHED BY AUTHORITY No. 4335] NEW DELHI, MONDAY, OCTOBER 28, 2024/KARTIKA 6, 1946 MINISTRY OF HEAVY INDUSTRIES NOTIFICATION New Delhi, the 28th October, 2024 SUBJECT: PM-eBus Sewa-Payment Security Mechanism (PSM) scheme for Procurement and Operation of Electric Buses S.O. 4711(E).—1. Introduction: Government of India has approved the PM-eBus Sewa-Payment Security Mechanism scheme (hereinafter called as 'Scheme') to establish a Payment Security Mechanism Fund (hereinafter called as 'Scheme Fund') for Procurement and Operation of electric buses (e-Bus) under the GoI/State Govt/UT- sponsored schemes. This will mitigate the risk of payment delays and enhance the bankability for OEMs/operators who have entered into Concession Agreements (CAs)¹ with Public Transport Authorities (PTAs)2 . 2. Objectives: i. Provide payment security in case of default by PTAs in making timely payment to the operators as per the CA executed between the PTAs and the OEM/operators ii. Provide a mechanism for recouping of Scheme Funds from the parent State Governments/UTs in the event of non-repayment by PTAs. This will ensure sustainability of the Scheme Fund. ii. Provide support in capacity building, training needs and adoption of innovative technologies by PTAs for e-bus operation. 3. Salient Features of the Scheme: 3.1 Coverage: The Scheme aims to cover 38,000 e-buses or more. 3.2 Target Beneficiaries: The beneficiaries of the Scheme shall be the PTAs and the OEMs/operators who operate e-buses under the Scheme. 3.3 Eligibility criteria: The eligibility criteria for PTAs, OEMs/operators to participate in the Scheme is explained below: 3.3.1 Eligibility criteria for PTAS: PTAs meeting the following criteria will be eligible to participate in this Scheme: (a) the PTAs adopt the Gross Cost Contract (GCC) model for procurement of e-buses which is aligned with Scheme guidelines. However, PTAs procuring buses through any other similar model may also be considered subject to approval by the steering committee, and (b) their parent States/UTs register the Direct Debit Mandate (DDM) with RBI. Under DDM, the States/UTs undertake to recoup the Scheme Fund as defined in the Scheme guidelines. The DDM submitted under the Scheme, will be valid for all Gol sponsored schemes for procurement and operation of e-buses, and (c) PTAs procure and operate e-buses with aggregation by Convergence Energy Services Limited (CESL) under any GoI/State Govt/UT scheme where the CA adheres to the Scheme guidelines, or (d) In case PTAs are directly procuring e-buses (without CESL), adhering to PSM guidelines, then their request for participation under the Scheme can be considered by the steering committee (SC). 3.3.2 Eligibility criteria for OEMs/operators: Those OEMs/operators who enter into CAs with PTAs satisfying eligibility criteria as mentioned at para 3.3.1 shall be eligible for availing the Scheme Fund. 3.4 Duration of the Scheme: The Scheme shall provide payment security coverage for up to 12 years for each bus deployed under the Scheme. 4. Scheme Outlay: The total financial outlay under the Scheme shall be 3,435.33 crore. 5. Implementation Mechanism: 5.1 Process to avail Scheme Fund by e-bus OEMs/operators: PTAs shall open and maintain an Escrow Account as specified in the CA. i. The OEM/operators will submit a regular bill/invoice to PTAs in accordance with the timelines specified in the CA. iii. The PTAs shall process the bill/invoice in accordance with the provisions of the CA. iv. If insufficient funds in the Escrow Account result in delay/non-payment by PTAs within the prescribed time as per CA, then the event will be called as "Default by PTA”. V. Such defaults by PTAs will be reported to CESL and the OEM/operators may submit a request to CESL (PSM Request) to invoke the Payment Security Mechanism under the Scheme. vi. CESL shall develop, operate and maintain a technology-based platform for the entire duration of the Scheme, that shall enable the OEMs/operators to submit their request for invoking the Scheme Fund. 5.2 Process for fund disbursement from the Scheme to e-bus OEM/operators: i. Process of fund disbursement along with the quantum and timelines will be detailed under Standard Operating Procedures (SOPs). ii. CESL shall review, verify and approve the PSM request of OEM/operators. iii. If CESL finds that the request of the OEM/operators is in accordance with CA, Scheme guidelines and the SOPs, then CESL shall disburse the approved amount from the Scheme Fund to the Escrow Account created under CA. 5.3 Repayment mechanism to PSM by PTAs/ States/UTs in case of default by PTAs: The repayment mechanism by the PTAs/ States/UTs to Scheme Fund is as follows: i. Repayment from PTAs to Scheme: a. PTAs are required to repay to the Scheme Fund, the entire amount disbursed from the Scheme Fund to the OEM/operators along with Late Payment Surcharge (LPS), within 90 days from the date of its disbursement. b. During this period, PTAs will be levied an interest in the form of late payment surcharge (LPS), on the amount to be repaid. с. The LPS would be levied @1% per annum in addition to the SBI's 3 years MCLR prevailing on the date of disbursement, compounded annually. d. The number of days of delay for which LPS will be applicable will start from the date of disbursement from Scheme Fund to OEM/operators up to the date of payment received from the PTAs/State Govts/UTs. ii. Recouping of Scheme Fund by State/UT through Direct Debit Mandate (DDM): a. In case the PTAs fails to repay the entire amount disbursed from the Scheme Fund along with Late Payment Surcharge (LPS) within 90 days from the disbursement date, MHI would request RBI to invoke the DDM. b. RBI would transfer the money to the Scheme Fund by debiting the account of the State Government/UTs, subject to availability of clear and sufficient balance in the account at the time of executing the mandate. Clear balance in the account of State Government means the amount held in such account excluding minimum balance, operating limit under special drawing facility, authorised limit under ways and means advances and overdraft. с. This will also include the LPS as mentioned at para 5.3, (i), (c). d. The number of days of delay for which LPS will be applicable will start from the date of disbursement of Scheme Funds to OEMs/operators up to the date of transfer of money to the Scheme Fund by debiting the account of State Governments/UTs. 6. Steering Committee (SC): To ensure effective operation and implementation of the Scheme, a steering committee has been constituted as under: +-----+------------------------------------------------------------+-------------+ | S. No. | Designation | Position | +=====+============================================================+=============+ | 1. | Additional /Joint Secretary (Auto), MHI | Chairperson | +-----+------------------------------------------------------------+-------------+ | 2. | Advisor, NITI Aayog | Member | +-----+------------------------------------------------------------+-------------+ | 3. | Additional/Joint Secretary, MoHUA | Member | +-----+------------------------------------------------------------+-------------+ | 4. | Additional/Joint Secretary, DoE, Ministry of Finance | Member | +-----+------------------------------------------------------------+-------------+ | 5. | Additional/Joint Secretary, Ministry of Road Transport & Highways | Member | +-----+------------------------------------------------------------+-------------+ | 6. | Additional/Joint Secretary of the Ministry implementing a scheme for e-buses | Member | +-----+------------------------------------------------------------+-------------+ | 7. | Managing Director & CEO, CESL | Convener | +-----+------------------------------------------------------------+-------------+ Note: Committee may co-opt any other member as and when required. 7. Implementing Agency – CESL: Convergence Energy Services Limited (CESL) will be the implementing agency for the Scheme. 8. Guidelines to the Scheme: For the effective operation and smooth implementation of the Scheme, the detailed guidelines shall be issued separately. [F. No. 12(49)/2023-AEI(26141)] Dr. HANIF QURESHI, Addl. Secy. ¹ CAs refers to the agreements executed between PTAs and OEM/operators, by whatever name called (such as Agreements, Contract Agreement, etc), for procurement / deployment / operation / maintenance of the electric buses ² PTAs such as State Transport Undertakings (STUs), State Transport Corporations (STCs), Special Purpose Vehicles (SPVs), and any other Govt. agencies operating the bus service in India. Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054. AMIT KUMAR Digitally signed by AMIT JAISWAL KUMAR JAISWAL Date: 2024.10.28 22:44:13 +05'30'