National Smart Grid Mission

(NSGM)

Organization Structure of NSGM

Governing Council headed by Ministry of Power
Empowered committee headed by secretary
power and supported by technical committee
headed by chairperson CEA.
NSGM project management unit (NPMU)

Role of NSGM
Assistance in project formulation such as

Pre-feasibility studies
Technology selection
CBA
Financing model selection etc.

Funding the DISCOMS and other agencies.

Training and capacity building for Utilities, State
Level Project Monitoring units & project
implementation teams.
Project Appraisal, approval, implementation,
monitoring and evaluation of results post
implementation etc.
Facilitate consumer awareness.

Scope of work for Smart Grid Mission

Deployment of smart meters and AMI.
Technical upgradation and deployment of GIS.
Development of medium sized microgrids up to 1
MW.
Development of Dist. Gen. in form of Rooftop PV.
Real time monitoring and control of Distribution
transformers.
Provision of Harmonic filters and other power
quality improvement measures.
Creation of Electric vehicle charging infrastructure.

Eligible Entities to participate under NSGM

All Discoms under state and private sector.
All proposed projects must be recommended by the
DRC(Distribution reforms committee)/SLPMUs

Criteria for Private sector Discoms

For Private sector Discoms operating in urban areas
Projects under this scheme will be implemented through a
State Government Agency and the assets to be created will
be owned by the state Government/state owned agencies.
These assets will be handed over to the concerned Discom
for use during the license period as agreed upon mutually.
The responsibility of O & M of assets will be of the
concerned Discom.

List of items not eligible under NSGM

Works already sanctioned under other schemes of
Govt. of India
Projects for which grant or subsidy from Govt. of
India has been received.
Civil works
Service lines to new consumers
GIS survey of consumers
Cost of land
Office equipment, vehicles, salaries etc.

Funding
S.No

Activity

Budgetary
support

Dev. of smart grids in smart

cities

30%

Dev. of micro grids

30%

Training and capacity Building

100%

Consumer Engagement++
(Funding to State owned
Discoms)
Installme
Condition for release
5
NSGM Establishment, O & M
nt
etc.

100%
Release
100%
of
Grant

Sanctioning of project

10%

I. LoA placement by utility

II. Updating of web portal regarding
award details and the KPIs

20%

Utilization of 90% of 1st installment and

release of equivalent Utility
contribution.

60%

After completion of works

10%

Procedures for Utility

Funds
Utilities will request NPMU for release of funds. The
necessary budget outlay in this regard shall be submitted
by the utility in advance(Quarterly and Annual).
Utility shall open separate dedicated bank account in
nationalized banks having e-banking facility. Nature of
Programme account shall be current account with CLTD
(corporate Liquid Term Deposit) facility.
All funds to the utility and payments by the utility will be
done through this programme account via e-banking facility.
Utility shall submit utilization certificates (UC) for the funds
released during the financial year by 30th April of
succeeding year. Release of further funds will be subject to
submission of UC. The UC shall provide physical
progress/achievements also apart from financial utilization.

Auditing
The Utility will ensure auditing of accounts relating
to receipt of funds from NPMU and expenditure
incurred by the utility against such receipts
incurred during FY by independent C.A. latest
before 30th of succeeding year.

Monitoring
The requisite details of the project from time to tome
as prescribed by NPMU shall be entered by the utility
in relevant module of NSGM portal
Utilities must place all master data, quality control
tests data as well as all payments made on the portal.
Utility shall assist the NPMU officials assigned to
assess works of projects

 Public Financial Management System (PFMS)

Utilities receiving funds under NSGM shall be
registered/mapped in PFMS.
The Utilities shall mandatorily enter details like receipts,
expenditures etc. in PFMS portal. In case of not entering
details, banks may not consider release of funds.
Utilities shall submit status of unspent capital subsidy/grant
lying with them to NPMU/MoP on quarterly basis.

Quality Assurance and concurrent evaluation

mechanism
Quality assurance and Inspection plan should be a integral
part of contract agreements with turnkey contractors,
vendors and erection agencies.

Completion of Project
Project completion certificate shall be furnished by the
utility signed by the Head of the utility to NPMU through
DRC/SLPMU.

Pre Closure/Recall of grant

Incase the utility fails to submit the project
completion report with in a period of 1 year from
the approved project completion date or not
completed the project within project completion
date, NPMU shall send a team to assess the works
and expenditure and submit its recommendation
for closure and also refund of excess grant
sanctioned to utility.
Incase the utility fails to award the project within 3
months of approval by empowered committee, the
project shall be deemed as closed/cancelled.
However the empowered committee can grant
extension based on merits of the case.