Section 10 in The Energy Conservation (Partial Risk Guarantee Fund for Energy Efficiency) Rules, 2016
10. Invocation of Guarantee.
(1)In case the participating financial institution decides for a guarantee claim under the Partial Risk Guarantee Fund for Energy Efficiency, it shall submit the guarantee claim Form to implementing agency within a period of one year from the date of declaration of the project as nonperforming assets.(2)The participating financial institution shall not make or be entitled to make any claim on the Partial Risk Guarantee Fund for Energy Efficiency in respect of the default of the said credit facility owing to actions or decisions taken contrary to or in contravention of the guidelines issued by the Partial Risk Guarantee Fund for Energy Efficiency.(3)The claim shall be preferred by the participating financial institution in such manner and within such time as may be specified by the Partial Risk Guarantee Fund for Energy Efficiency in this behalf.(4)The implementing agency shall appoint an independent measurement and verification agency, empanelled by Bureau, to do the measurement and verification. Based on the recommendations of measurement and verification agency and submission of relevant documents guarantee claim shall be processed by implementing agency.(5)The Partial Risk Guarantee Fund for Energy Efficiency shall pay seventy five percent of the claim against guarantee by the participating financial institution, within sixty days, subject to the claim being otherwise found in order and complete in all respects and the balance twenty five percent of the guaranteed amount shall be paid on conclusion of recovery proceedings by the participating financial institution.(6)On a claim being paid, the Partial Risk Guarantee Fund for Energy Efficiency shall be deemed to have been discharged from all its liabilities on account of the guarantee in force in respect of the borrower concerned.(7)In the event of default the participating financial institution shall exercise its rights, if any, to take over the assets of the borrowers and the amount realised, if any, from the sale of such assets or otherwise shall be credited in proportion to the guarantee given on the total loan amount for that project to Partial Risk Guarantee Fund for Energy Efficiency before it claims the remaining twenty five percent of the claim against guarantee.(8)In the event of serious deficiencies, the participating financial institution shall be liable to refund the claim released by the Partial Risk Guarantee Fund for Energy Efficiency together with penal interest at the rate of four percent above the base rate of State Bank of India. These serious deficiencies shall be such as inadequate appraisal or renewal or follow-up or conduct of the project or multiple lodgement of claim, or suppression of any material information for the settlement of claims or any other deficiency.(9)The participating financial institution shall pay such penal interest, when demanded by the Partial Risk Guarantee Fund for Energy Efficiency, from the date of the initial release of the claim by the Partial Risk Guarantee Fund for Energy Efficiency to the date of refund of the claim.
