NHEV : FREQUENTLY ASKED QUESTION
EoDB Services is the Piloting Agency of multiple such short-term and long-term pilots. This is one of those technical advancement ambition qualified to be piloted in mobility sector with emerging technologies. National Highways for Electric Vehicle is the technical name of the pilot, as the name suggests, it is about making highways ready at national level and technically capable to support electric vehicles.
The word national represents here its scale and categorisation in which national highways and expressways are considered for upgradation not state highways. Resembles are just technically identical, it has nothing to do with the name or identity of NHAI (National Highway Authority of India) Other than specific interdependencies and coherence explained further in land lease section.
Nov 2021 technical name NHEV was proposed to be replaced with a popular public name Atal Harit Vidyut Rashtriya Mahamarg (AHVRM) for the pilot project test route from Delhi towards Uttar Pradesh after its first successful technical trial completed on the 25 Dec 2020 birth anniversary of former PM Bharat Ratan Late Sri Atal Bihari Vajpayee. Information on the origin proposal from UP Govt or Central government is not available in public domain but it was scheduled to be announced by PM Modi on 25th Nov 2021 in Foundation Ceremony of Jewar Airport is widely known and reported.
EoDB services conduct rigorous ‘Need Assessment’ on various requests and areas of technical upgradation in various sectors, identified by experts and leadership, including emerging tech companies, ministries, bureaucrats and technocrat of subjected microeconomic sector. Prime qualification of such technical upgradation requests to qualify for a technical pilot under EoDB is to be an emerging tech adoption in the existing sector, must be outlined in a clarion call from the PM Modi as a national ambition. Due to limited bandwidth and resources available within EoDB services to conduct such pilots a detailed ‘Need Assessment’ is conducted to ensure undebatable intent and availability of relevant content from corresponding government bodies and the ministries are examined by EoDB services from open source, media, union budget, state budgets initiatives, guidelines, intended to direct overall industry in the direction from relevant ministries, formation of councils, committees and panels to facilitate and direct over all sector to envisage such technical upgradations.
EODB Services does not create pilot projects as a consequence of Governmental or Government Departmental directives, Request for proposals or mandates, nor does it actively seek such direct mandates prior to creating relevant high impact pilots; rather as India’s premier piloting agency, it sees the identification & assessment of opportunities in the sectors that has national ambitions as its own primary mandate. Once a technical prospect for upgrade in a sector identified, evaluated and validated through Need Assessment – EODB acts as both proposer and a primary executor in the proposed pilots that demonstrate efficiencies and innovations and can be taken up for larger execution by mandated departments / agencies post successful completion of the pilots. This differentiates EoDB from being an advisory body, consultant or a think tank as instead of advising, it executes such pilots itself as a primary executor by raising initial support from interested partners.
- Successful Technical Trials on Pilot Routes (Completed)
2020 (225 KM), 2022 (272 KM), 2024 (332 KM)
NHEV has successfully completed pilot e-highway operations on three key national highway corridors, which together cover about 830 km of routes under upgradation:- Delhi – Agra (Yamuna Expressway) – 225 km, 2020 (E-Bus & Long-Range SUV Cab)
- Delhi – Jaipur (NH-48) – 272 km, 2022 (Electric Bus & Long-Range SUV Cab)
- Chennai – Trichy (NH-179B) – 332 km, 2024 (E-Trucks and Electric Freight Vehicle)
These pilot corridors have completed technical trials on prototype charging infrastructure and roadside assistance. Many operators and participants start running electric vehicles after tech trial success, before readiness of elements like NHEV 3G stations, since they will be completed by 2027.
- Total Distance Covered So Far and land acquisition status for 3G Energy station
- 830 km of routes have completed tech & commercial trials out of 5500 km e-highways
- The program’s national rollout target is ~ 5,500 km across 26 highway corridors under the Bharatmala and Sagarmala routes by 2027. Leasing space from (National Highway Logistics Management Limited) NHLML – Wayside Amenities are now extended to private players also to accelerate the speed of land acquisition as Karnataka’s BESCOM become 1st State partner with NHEV to open a digital portal for private owners to lease their highway land for NHEV 3G Energy Charging station and get better lease than petrol pumps. (Recent Update Jan 2026)
Rollout has two phases: infra rollout, followed by the electric vehicle rollout
Phase I: 2025 – 2027 | Phase II: 2028 – 2030
North Zone Infra Rollout
- 1,816 km, 66 stations, 8 depots, 8 control rooms, 5 States
- Origin Destination City Pairs: Delhi–Jaipur, Jaipur-Udaipur, Delhi–Agra, Agra–Lucknow, Lucknow-Prayagraj, Prayagraj-Varanasi, Varanasi-Bodhgaya
- States: Delhi, Haryana, Rajasthan, Uttar Pradesh, Bihar
West Zone Infra Rollout
- 1,401 km, 50 stations, 5 depots, 5 control rooms, 4 states
- Origin Destination City Pairs: Udaipur-Ahmedabad, Ahmedabad-Vadodara, Vadodara-Surat, Surat-Mumbai, Mumbai-Pune, Pune-Goa
- States: Rajasthan, Gujarat, Maharashtra, Goa
East Zone Infra Rollout
- 924 km, 32 stations, 5 depots, 5 control rooms, 4 states
- Origin Destination City Pairs: Bodhgaya-Dhanbad, Dhanbad-Kolkata, Kolkata-Balasore, Balasore–Bhubaneswar
- States: Bihar, Jharkhand, West Bengal, Odisha
South Zone Infra Rollout
- 3,161 km, 116 stations, 11 depots, 11 control rooms, 5 states
- Origin Destination City Pairs: Bhubaneshwar-Vishakapatnam, Visakhapatnam-Vijayawada, Vijayawada-Chennai, Chennai-Trichy, Trichy-Madurai, Madurai-Kanyakumari, Krishnagiri-Madurai, Coimbatore-Ulundurpet, Goa-Bengaluru
- States: Odisha, Andhra Pradesh, Karnataka, Tamil Nadu, Goa
Outlook 2026 and EV Deployment movable assets components
Scale to 5,500 km nationwide, focusing on high-traffic corridors, logistics hubs, and intercity routes to create a commercially viable pan-India e-highway network.
The program encompasses the deployment of 520 buses, 5,200 cars, 520 e-trucks, 5,280 electric two- and three-wheelers each, 528 battery-swapping units, and 548 highway roadside assistance
vehicles, with NHEV and Transvolt Mobility’s collaboration further strengthening the effort to deploy 1,000 e-trucks on World EV Day 2025.
- Core NHEV Entities
- Ease of Doing Business (EoDB) – Piloting agency of NHEV program driving strategic planning, stakeholder coordination, technical standards, Tech Trials, and the AHEM deployment framework.
- Government of India – Provides policy support, inter-ministerial coordination, land access via NHAI/NHLML, target setting, and inclusion in national budgets. Ministries such as Ministry of Power (MoP), Road Transport & Highways (MoRTH), Heavy Industries (MHI), Electronics and Information Technology (MeITY), Ministry of New and Renewable Energy (MNRE), Department of Science and Technology (DST), are relevant for NHEV to provide various inputs, suggestions and time to time consultation & guidelines to follow.
- Government of States: At the state level, Regional Transport Offices (RTOs) and DISCOMs play a critical role—RTOs in facilitating electric vehicle registration and DISCOMs in ensuring reliable power supply to 3G energy stations. Karnataka state has initiated the process, with BESCOM taking a leading role by streamlining land identification and approvals through a single-window portal for EV charging and battery-swapping infrastructure.
- Public Sector Partners (PSUs & Utilities)
- Power & Petroleum PSUs – NHEV offers ~30% of stations (81 stations) as operators (e.g., National Thermal Power Corporation (NTPC Limited), Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL) state utilities).
- Utilities/Grid Partners – Ensure power provisioning, grid connections, and green energy integration. At the national level, MNRE provides policy support, while at the state level, renewable energy (RE) initiatives, such as solar parks and Green Open Access mechanisms—enable clean power sourcing. Leading public and private sector stakeholders including NTPC Limited, NISE, BSES, Adani TotalEnergies E-Mobility Limited, Goldi Solar, and Bitek Solar have recently joined the Energy Transition dialogue through dedicated working groups, strengthening collaboration across the ecosystem.
- Private Sector Partners
- Charging Infrastructure – Charging infrastructure is supported by a strong ecosystem of technology and equipment providers, including Tirex Chargers, Lotus Wireless Technologies, Accord Transformers and Switchgear, RR Kabel, CIKIT Electricals and Technologies, Amara Raja Power Systems, Bitek Solar, IYSERT Energy and Research, Kazam EV Tech, Zenergize Power Tech, and Zivah Electriva.
- EV OEMs – Montra Electric, iBoard, DHI Mobility, Energy in Motion, Blue Energy Motors, Ashok Leyland, Bitek Solar, SANY Motors, Skyworth are under consideration to qualify under NHEV CCV Protocol for deployment of eHCV fleets and CCV protocol integration.
- Network Operators – SoftTech Engineers, Netradyne Technology India, Samin Tekmindz India, trackNOW, MapmyIndia, Infosys, NTT Data, Pinaka Innovation, Park+, CleanCarbon, Lynkit Solutions, Kreate Technologies manage station operations, user experience, and network integration.
- Industry & Logistics Stakeholders: Logistics companies and supply chain firms like Transvolt Mobility, Greencell Mobility (NueGo), RedBus, Zingbus, Ourbus, SnapE Cabs, Refex Mobility, Lithium Urban provide feedback and help shape corridor usage models.
- Oil Marketing Companies (OMCs)
- NHEV has already initiated discussion with Indraprastha Gas Limited (IGL) and Mahanagar Gas and shall engage with Adani TotalEnergies E-Mobility Limited (ATEL), GAIL India, Jio BP Pulse, Reliance BP Mobility, NTPC Green, Oil and Natural Gas Corporation (ONGC), Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL), Hindustan Petroleum Corporation Limited (HPCL), Oil India, Shell India at India Energy Week 2026 for 30% asset allocation in PPP mode.
- Responsibilities Split – Design Build Operate and Transfer (DBOT) by NHEV
- Design: EoDB & 4 NHEV Working Groups (a. Energy b. Network c. Construction d. Services) with GoI standards and representatives give final shapes to physical, digital and financing frameworks and prototypes with inputs and guidelines from Department of Science & Technology (DST), Quality Council of India (QCI), NITI Aayog, MoRTH’s Corridor Management Unit (CMU) and various reviews from Parliamentary Committees of Estimates on behalf of Govt of India.
- Build: NHEV develops the physical station infrastructure and the digital e-highway network in collaboration with a diverse set of partners. Core construction and structural partners include UltraTech, Tata Steel Nest-In, and zonal partners such as Sri Sastha, Goldi Solar, Bitek Solar, and Aksara Tex, who also support the development of station amenities. These stations are implemented within a 12-month bank moratorium framework.
The digital network and intelligent mobility layer are enabled by leading technology partners including SoftTech Engineers, Netradyne Technology India, Samin Tekmindz India, trackNOW, MapmyIndia, Infosys, NTT Data, Pinaka Innovation, Park+, CleanCarbon, Lynkit Solutions, and Kreate Technologies, collectively powering the digital e-highway ecosystem. - Operate: NHEV Operate these stations and master operator of E-highway network and assets with extremely carefully chosen and tied partners from Airport operations like Schevaran Laboratory, Jones Lang LaSalle (JLL), Buzil Rossari, Devyani International, Times OOH; to ensure global standards, facility hygiene and maintenance at world class 3G Energy Stations on highways after each 50 kms.
- Transfer: NHEV Utilises Bank’s Credit Outlay of INR 3,672 Crores to build and operate stations by providing Letter of Credit (LC) from entities to whom stations are allocated and eventually to be owned till land lease period of 20-30 years after the initial 4-5 years of breakeven period. NHEV remains custodian of ESCROW bank account till credit is paid back and once the bank exits, NHEV transfers ESCROW Bank account to allottee PSU / Entity and NHEV remains operator.
- Core NHEV Entities
Utilisation on EV highways like NHEV is expected to be driven first by freight and logistics vehicles, followed by electric buses, with passenger EVs scaling more gradually.
- Freight & logistics EVs are the earliest and strongest drivers due to predictable routes, high daily utilisation, and clear total cost of ownership benefits. NHEV 3rd Technical commercial Tech-Trial – III of Electric Trucks between Chennai & Trichy has pushed India’s biggest rollout of 1000 heavy duty Electric trucks with IFC backed TRANSVOLT.
- Electric buses follow closely and schedule routes especially on intercity where charging can be planned around depots and en-route NHEV 3G Energy stations parallely strengthening its fleet partners like Greencell Mobility (NueGo), RedBus, Zingbus, OurBus to procure 20 electric buses from NHEV credit outlay for movable assets for each route, totaling to deployment of 520 buses as introductory fleet.
- Passenger EVs: Fast changing trends of using hired vehicles for family travel, holidays and adventure driving trips has started changing the role of mobility in holidays and with growing demands of such vehicles. Electric version vehicles offer a comparatively lower prices hired vehicle than diesel. NHEV has successfully piloted it with Blusmart on Delhi – Jaipur route for technical, commercial and user/passenger confidence on more than 200 Long range SUVs EV starting from 2 long-range SUV vehicles from Morris Garages (MG Motors) initially on trial basis in its 2nd trail in 2022.
The National Highways for Electric Vehicles (NHEV) program envisages a total investment of ₹5,000 crore over the next five years to develop a pan-India electric highway network of around 5,500 km. Of this, ₹3,672 crore has already achieved financial closure through credit outlay funding from HDFC Bank, as outlined under the Annuity Hybrid E-Mobility (AHEM) model. The remaining balance of approximately ₹1,328 crore is proposed to be raised through sovereign bonds, completing the overall financing plan. This non-infra funding component is to be given to partners to procure and operate movable assets out of which Transvolt ($20 Million USD) and Greencell ($37 Million USD) is already raised.
Within the AHEM framework, private capital is expected to play a significant role—accounting for roughly 30% of the overall capex—alongside public sector participation and green economy investors, ensuring a balanced, PPP-driven approach to scaling India’s electric highway infrastructure.
Highway charging corridors under the NHEV program deliver strong unit economics for investors, leveraging the AHEM hybrid PPP model that ensures rapid Capex breakeven and predictable revenues. Large-scale stations (70+ chargers) achieve breakeven in 36-40 months at just 30% utilisation—a dramatic improvement over the national urban average of 3-5% utilisation that previously stretched breakeven to 45 years or more. This viability stems from anchored demand on captive energy offtake on e-highways, where freight fleets and e-buses provide steady throughput, unlike scattered urban setups.​
Capex Structure
Total network Capex for 5,000 km stands at Rs 5,000 crore, with per-station costs varying by scale: prototype large stations in pilots like Gurugram require investments aligned to this blended pool, capex investment coming from Public – Private – People & State ( 30% public, 30% private, 30% from people / family offices, and 10% state owned entities. Approximately 25-30 crore initial capex which may expand to accommodate revenue making components and infra ie – motel, conference halls, warehouse, etc.
Utilisation Thresholds
The key threshold is achieving 30% daily utilisation for financial sustainability, already exceeded in prototype pilot stations (e.g., 72% at Gurugram prototype). Below 20%, returns weaken due to fixed opex (power, maintenance); above 30%, supports wider margins via economies of scale, with revenue from charging @ Rs 10–14 /kWh also extending dominance in attracting EV footfall on highways as they compete with Dhaba Chargers offering EV Charge @ Rs 18-24/kWh. Advertisement, utilities, amenities, battery swapping, RSA and add-ons like conference and EV sales outlets also generate decent revenue. Freight-heavy corridors like Delhi-Jaipur hit this faster than passenger-focused ones, driven by PM E-Drive subsidies pulling e-logistics adoption.​
Breakeven Timelines
Breakeven projected on 5 years (60 months) but occurs in 3.5 years (36-40 months) due to exponential increase in EVs on those NHEV highways where introductory fleet are deployed with 200 SUV Evs, 20 Busses, 10 heavy duty E trucks. Additionally, on heavy freight and logistics routes NHEV is breaking the silos with the first 1000 heavy duty electric trucks backed by 10-year offtake contracts from NHEV stations with fleets and green power access reducing power input costs by 20-30%. Pre-NHEV benchmarks showed 45+ months at low utilisation; now, pilots validate 30-40 months with IRR >15% post-tax, aided by Rs 36.72 billion debt from HDFC.
Investor Considerations
From an investor lens, NHEV 3G energy stations build on Annuity Hybrid E-Mobility (AHEM) model a derivative of Hybrid Annuity Model (HAM) offer toll-like stability: lower initial risks on investor due to subvention as EMI or Interest starts only after station handover to allottee / investor. Hence a haste free land acquisition, lease, design and build offered and handled by NHEV with bank for stage wise construction linked progress audits. Investor gets recurring annuities, guaranteed offtake contracts with space tenancy and advance rentals deposited in the ESCROW account backing 30% of overall utilization of space, EVCI equipment and utilities from the first day.
NHEV corridors are expected to reach a meaningful national scale by 2027–28, once the current pilot and early rollout phases expand into continuous north–south and east–west zone electric highway corridors covering ~5,500 km. By this stage, station density, grid reliability and fleet adoption—especially in freight and intercity buses—are expected to be sufficient to drive predictable utilisation across the network.
Over time, NHEV has the potential to evolve into a monetisable infrastructure platform comparable to toll roads or pipeline assets. Charging revenues, annuity-linked PPP structures under AHEM, long-term power offtake agreements, fleet contracts, data and connectivity services, and ancillary commercial services can together create stable, long-duration cash flows. As utilisation matures and risks reduce, NHEV assets can be bundled, securitised, or transferred to infrastructure investment trusts (InvITs), positioning electric highways as a new, yield-generating asset class within India’s core infrastructure landscape.
The relatively high frequency with which pilots proposed by EODB find recognition, support and sanctions, from relevant authorities is a testament to the efficacy of its need assessment before conducting pilots, the quality of its results, the strength of its performance and its agility and ability in devising workable solutions as well as interfacing with relevant stakeholders to bring them to fruition. However, very few selected and well augmented need assessment and proposals are considered by EoDB to conduct pilot, NHEV, DIISHA, Drones Pilot, Climate Finance, Tech for Circular Economy, Cleantech for Swachh Bharat, AHEM, DHAM are few of them.
EoDB takes responsibility to illustrate overall ambition of the pilot in sectorial compartments to invite relevant and competent companies and stakeholders to examine their opportunities to propose their corresponding technologies, products, solutions (TPS) and services to be prototyped as a component to achieve ultimate goals to table such pilot models or prototypes for formal examinations by entities and bodies in authority to sanction or redirect. Depending on the claims from such partners and participants of EoDB pilots who submit their initial applications the agency evaluate their candidature, primarily on the basis of their merit, productivity and performance during the Pilot and from results of their value addition and capability to sustain their initial claim; to be prototyped as a corresponding partner and best available solution, technology or product provider for the problem statement identified, outlined and illustrated by EodB in its invitation with limited disclosers.
Since these upgradations hasn’t happened before hence expectations of a predefined pathway and existing rule-book of procedures are highly discouraged during selection. All possible degrees of careful disclosures made to distinguish any participants expectations to unanimously consent their understanding that if these pathways, standards, specifications, certifications, procedures would have pre existed this would have become a routine business and hardly any technical or commercial real word pilot should have required. Their understanding and intent to partner and participate in such ambitions that gives opportunity to collectively prototype their TPS for wider adoption and accelerated transition is highly required, agreed and documented.
EoDB doesn’t work in the interest of any individual company, neither it provides any private or one on one consulting on any technology, product or service for their launch, positioning, adoption, acceptance or deployment adoption or a scale. But it doesn’t restrict or control its partners to get ultimately benefited with such eventual benefits of participation, if they succeed in establishing their TPS as most reliable technical upgradation available in the market as successfully prototyped under these pilots. Piloting Agency exclusively intend to build new markets with emerging technologies by developing tech micro-economies within traditional sectors. In order to mobilise initial resources and services to conduct pilots of each components in various compartments it uniformly charge owners (of such technologies, products, services
{TPS} and solutions) and IP owners after careful examination on their merits, competence and intent in similar fields as sought in pilot procurement compartments. Since one partner can not be expected to pay for other partners subscription or services agency doesn’t allow partners to participate without uniform contributions or security deposit against their piloting services fee in the common pool for financing further technical and commercial evaluations from domain experts.
Piloting Agency is constituted as a profit making entity agility and ability of accelerated selection of ambitions. But it doesn’t intend to make profit from wider participation, application or fee collection; rather it believes in less but meaningful and dedicated participation from partners and participants. In order to focus on its ultimate goal of emerging tech commercialisation agency doesn’t enter into tailored, specific, categorised fee structure based on the value, volume, category, turnover, benefits of its participants and offers uniform fee structure calculated on the basis of overall expenditure needed in the pilot to build proof of concepts (PoC), conduct technical trials, commercial prototyping of financial instruments, test round, fault and bug testing, organise consultations, build inclusive structure to account stakeholders inputs and recommendations and ultimately run regulatory compliances to double sure eligibility, viability, bankability of final version before tabling it for commissioning or to obtain needed sanctions and approvals.
Right from a large entity to an early stage startup can be benefited with availability of such highly required piloting services on bare minimum subscription fee below Rs. 5000/- per month, charged annually to provide them 12 months of participation in such pilots aligned to their ambitions; to enable them to economically prototype their TPS for future adoptions. As on date a maximum expense of participants subscription fee paid for a 12 months piloting service pack sum up below INR 60 thousand including taxes is a testament of agency commitment to offer most economical package of expertise needed to be onboarded to examine applications from the merit perspectives and provide multiple opportunities to applications to re-submit their TPS and projected commercials for 12 months to qualify for further advance levels of submissions to obtain Letter of Recommendations (LoR) to be most suitable and qualified to prototype in the pilot commercially.
Similar to the absence of pre-existing pathway, rule-book, specifications and standards for such ongoing pilots; its most likely and anticipated by the piloting agency to, not find an exact match for the requirement sought in compartments of elements, components and categories for pilot. It would be unfair to delegate work or issue Letter of Award (LoA) without examining their productivity and value preposition. Hence, they are directed to participate in the prototyping of their offerings in the concurrent pilots, test-trial runs to establish their candidature and productivity grounds for selection after carefully examining their initial quotes drafted to run a financial feasible and alignment with overall pilot project budget.
Participants and partners are made aware about deviations, omissions and exceptions being practiced during pilot in order to primarily establish the upgradations, adoption and commercialisation pathways before shifting focus to build a micro detailed procurement process in subsequent stages of scale up beyond prototypes and pilots to meet necessary compliances. But it doesn’t mean absence of reasonable grounds of selection of participants from applicants. However, these hybrid selections based on the grounds of merits, productivity and performance are only limited to pilots and participants are given clarity at very early stage of application submission. In order to make such pathways for emerging tech among closely knitted projects with government entities, who are necessarily compliant and adherents of compliances justifying expenditure of public funds; Piloting agency ensures reasonable distance and severance from accepting any commercial support, funding, finance, or grant from government that require subsequent implementation of traditional rules in the prototyping and pilots stage.
EoDB Services ethos to extend maximum possible ease of doing business and build Public Private Partnership (PPP) funding models are guiding principles behind making each pilot project eventually eligible for funding and allocation in PPP mode. As an emerging Tech piloting agency, we believe in reasonable pricing approach & mechanism that a emerging-tech in its prototyping stage can’t be cheapest to qualify as level one competitive bidder as per traditional L1-L2, competitive bidding models. Before achieving its mass adoption and accelerated nationwide deployment in volumes. But, all other governmental compliances to maintain transparency and fair documentation are practiced from beginning to make project assets eligible for government commercial support, subsidies, incentives and to enable public undertakings, government entities comfortable to participate in PPP mode in subsequent allocations stages.
A uniform payment made by participants as initial security against actual piloting fee to be eventually calculated after summarising time, efforts and resources allocated to commercially and technically prototype their offering is necessary to ascertain following factors in order to ensure seamless piloting upto the stage for its submission for funding or sanctions in appropriate PPP or open market mode.
- Agency require to confirm serious participation as its rendering services for benefiting the partners too during the
- Non serious participants doesn’t enter piloting as they may utilise insights and exit without paying for their expenses.
- A secured procurement backed by securities & warranties are necessary to ensure stakeholders & investors confidence.
- An unsecured procurement may face subsequent stepping out of partners in performance and trial stages of pilot.
- Piloting agency can not straight away table project for funding, sanctions or allocation without prototyping
- Agency need partners to sponsor their prototyping financially at prototyping stage as they are based on their claims.
- Funding agencies & banks of piloting agency can not serve bank guarantee for project before sanctions and approvals.
- Agency need to fund and support pilot in pre-commissioning stage and make project eligible for funding on pilot
- Prototype once accepted for PPP funding allow agency to serve securities on behalf of participants for their ease.
Partners are exempted from repeatedly submitting securities and performance guarantees as they are backed by agency during commissioning & it enable partners with ease to focus on their offering instead of furnishing repeated securities.
Minimum order value unit should be 10 lac and maximum units can be clubbed together are 100 across assets in one round of procurement. Minimum performance guarantee, bank guarantee or Security against Rs 10 crore order value in traditional procurement model shall be 25 to 30 Lac INR. However in this hybrid mode it’s only Rs. 5 Lac security which also serves as security against piloting services subscription fee that participants only pay at end of successful piloting.
Yes. Any money or advance received as security deposit for the performance of contract for supply of goods or provision of services to be rendered will not be termed as deposits and would not attract violations of The Companies Act, 2013 and regulations of Reserve Bank of India that restrict the acceptance of deposit in a Private Limited Company. As money received in the ordinary course of business any amount received in the ordinary course of business will not be termed as deposits. The following are a few examples of money received in the ordinary course of business:
- Advance for supply of goods or services provided that the advance is appropriated against goods or services delivered within a period of 365 days.
- Advance received in connection with property proprietary services under an arrangement or contract, provided the advance is adjusted against the property transaction in accordance with the terms and conditions.
- Advance received as security deposit for the performance of contract for supply of goods or provision of services.
Advanced received under long term projects for supply of capital goods.
The Companies Act, 2013 and regulations of Reserve Bank of India restrict the acceptance of public deposit in a Private Limited Company. The Companies Act, 2013 allows only banking companies, non-banking financial companies, housing finance company and company specified by the Central Government to accept invite, accept or renew deposits from the public. Therefore, private limited companies are strictly prohibited from accepting public deposits.
Piloting agency utilise the common pool of securities against piloting fee for piloting and its expenditure. In order to ensure uniformity regardless of higher or lower participation from the partners / applicants end its subsequently spent on various stages and made publicly, visibility available for partners to engage and participate as per their availability and requirement for 12 months subscription period. Depending on various opportunities and attempts required by partners to prototype their offerings, they may participate once or more than once in any tech- trial, POC, commercial modelling, pricing exercise, or regulatory or technical consultative rounds frequently organised by the agency. In case partners wish to extend their subscription beyond 12 month they may renew by paying same subscription fee to unlimited years and avail unlimited opportunities. Application fee and security against piloting fee are to be deposited with applicable taxes and GST on services. Payee participant can account this payment as expenditure in business promotion in their ledger and receiving piloting agency can account this receipt as piloting fee advance to be adjusted against final piloting fee as and when pilot concluded as above or lesser than the advance paid as security against piloting fee.
A security paid against filing fee is also being spent as an expenditure on procurement by the piloting agency. The agency may include this expenditure in the value of asset while pricing them for allocation before funding agency or final allottee. In the occasion, when the expenditure made by the piloting agency from the common pool of security furnished by participants against their piloting fees, the agency has liberty to charge a procurement fee equivalent to the expenditure or above (depending on the merit and value addition it does to the asset) from the final allottee of the asset, who will eventually own the infrastructure. At the stage of such receipt or return of expenditure done by the piloting agency from its fee for the procurement, which was originally to be done or paid by the asset owner, the agency will revoke the same security amount furnished by participants against the piloting fee without any interest as mentioned in the application for obtaining services. This also serves the purpose of performance guarantee by the partner or Applicant furnished during the performance period. Since, the delivery of partners offerings solutions, technology, products and services shall be completed by the time asset is allocated to its final allottee and all clearances, certification of completion and payments were made to the partner against their performance, according to the scope of work defined and mentioned in the final letter of award.
Since the furnished security against piloting fee is in duel utilisation here, and also serving the purpose to extend ease of doing business of participant’s performance guarantee and Earnest Money Deposit (EMD) before Agency in the piloting phase. Based on which the agency, conduct their prototyping and upon successful prototyping place it for funding, and allocation of asset. In given circumstances where the security is recorded and documented at multiple stages, cannot be clubbed with actual expenditure or the final piloting fee paid by the participant as it’s varied in nature from category to category volume to value. Henceforth at the time of revocation upon Upon receipt of the procurement fees by the agency, same amount, furnished as security against piloting fees shall be revoked and returned to the payee without interest or tax.
As all scope of work are on Capex purchase of offerings from participants turned partners upon successful prototyping at LoA stage and 100% payments are made to them at completion stage of allocation. Partners are expected to enter into another Annual Maintenance Contract (AMC) for their asset or service life cycle and eligible to raise annual AMC invoices and also subjected to furnish a minimum maintenance guarantee deposit for the period. At this stage partners can take credit note of this revoked security and pledge it back as minimum maintenance guarantee deposit. In case partners doesn’t have to enter into AMC contract; this receipt can be accounted as income from the project as its revoked as reward for successful completion of their work for which they can receive fee or income in their books or accounts.
