Centre can deduct outstanding payments from states getting benefits of PM e-bus
PM E-Bus scheme through a Direct Debit Mandate (DDM) with the Reserve Bank of India (RBI). According to the PM-eBus Sewa-Payment Security Mechanism (PSM) scheme, notified by the Ministry of Heavy Industries (MHI), states getting electric buses (e-buses) through this route will permit the centre to recover overdue amounts.
Procurement and operation of e-buses by Public Transport Authorities (PTAs) is supported under the PM e-Bus PSM scheme. These buses are handed over to state government or union territory-controlled PTAs to operate them and recover costs through fares. Since the PTAs are in poor financial health, bus suppliers fear they will not be paid by the states.
The PSM scheme addresses concerns of e-bus suppliers by ensuring timely payments to operators through a dedicated fund. In case of payment default by Public Transport Authorities (PTAs), Convergence Energy Services Limited (CESL), the implementing agency, shall make necessary payments from the scheme funds which will be later recouped by the centre.
States also need to shell out a penalty for late payment. This penalty has been fixed at 1% per annum in addition to the SBI’s 3 years Marginal Cost of Funds-based Lending Rate (MCLR) prevailing on the date of disbursement, compounded annually.
“The number of days of delay for which Late Payment Surcharge (LPS) will be applicable will start from the date of disbursement from Scheme Fund to operators up to the date of payment received from the PTAs/State Govts/UTs,” the MHI notification said.
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