The extent of guarantee cover as a proportion to the guaranteed loan expected to be 40%-75% (the full range initially will be 20% to 75%). The guarantee cover would be calculated on the lowest of the following:

1) Principal outstanding as on date of account turned into NPA

2) Principal plus interest as on date of claim has been lodged with PEA, and

3) Sanctioned Loan amount guaranteed.

Further, other charges such as penal interest, commitment charge, service charge or any other levies / expenses shall not qualify for the guarantee cover.

The minimum amount of single guaranteed loan shall be INR 1 million (Rupees One Million). . The maximum amount of loan amount guaranteed shall not exceed INR 150 million. The guarantee coverage in respect of multiple lenders to a project shall be on pro-rata basis depending upon the amount of loan sanctioned. The amount of aggregate guarantees outstanding at any time in respect of projects involving a single Host or a single ESCO or a single group of companies shall not exceed INR 450 million. The PEA may limit the aggregate borrowing limit for single ESCOs to INR 400 million, if such ESCOs are graded in the category of 5 (poor).