The minimum outlay for the proposed payment security mechanism (PSM) scheme has been pegged at Rs 3,500 crore, and a Cabinet note on the same is being prepared.
The scheme is part of the new government’s first 100-day agenda, and is meant to promote the adoption of e-buses by state transport undertakings (STUs).
The PSM scheme will be implemented by Convergence Energy Services (CESL).
In terms of modalities, the mechanism guarantees monthly lease payments owed to e-bus manufacturers by STUs.
Under the mechanism, payment to e-bus manufacturers will be made through central grants to the defaulting states where the state transport undertakings fail to make the payments.
Earlier, the ministry of heavy industries had circulated a consultation paper to all states and union territories for their consent to become a part of this scheme.
The scheme will be supplemented by USAID’s Rs 1,500 crore grant, for which CESL has applied for FCRA approval from the home ministry.
