Financial provision and guidelines for implementation of the programme on Akshay Urja Shops.

A. Financial Support for new shops.

a) Setting up of Akshay Urja Shops (one per district)

  • Soft loan at an interest rate of 7% to a maximum of 85% of the cost of establishment of the shop subject to a maximum of Rs. 10 lakhs will be provided from public sector banks and scheduled co-operative banks, repayable over a period of five years.
  • Monthly recurring grant of Rs. 5,000/- per months towards manpower, electricity, telephone bills and other miscellaneous expenses.
  • An incentive of Rs. 5000/- per month based on minimum turnover of Rs. 50,000/- per month during the first year and Rs. 1,00,000/- per month during the second year of operation (the shops will not be eligible for any incentive for a particular month if the turnover is below the minimum amount)

B. Submission of proposals and release of CFA

The applicants for in opening a shop will contact the concerned State Nodal Agency (SNA) and develop proposal for Akshay Urja Shops in the formal given at

C. Release of CFA and settlement of accounts

  • 50% of the proposed monthly recurring grant and the incentive to be given to the shops during their 1st year operation will be released after SNAs inform about establishment of the shops. The SNAs, will release this grant and the incentive to the shops on reimbursement basis after every six month block period as per the scheme provisions. Further CFA will be released to SNAs based on the documents received from them, maximum twice a year for the block period Aprils to September and October to March. The accounts will be settled based on the audited SOE as per Appendix III(d) and UC as per Appendix V. As regards service charges to SNAs, 50% of the eligible amount will be released after establishment of the shops and balance on receipt of report about publicity activities supported and actual expenditure details.

Interest subsidy on upfront basis debited by the bank on loans sanctioned to beneficiaries will be released on reimbursement basis after establishment of he shops along with service charges to IREDA and banks based on progress report, SOE and UC received from IREDA.