The scope of this Agreement is the operation & maintenance by the Universal Service Provider (USP), of RDELs installed by it between 01.04.2002 and 31.3.2005 in the specified SDCAs in the service areas covered under the Agreement. Rural DELs means the DELs installed in rural areas as defined in conducting the Census of 2001 and located in net cost positive SDCAs.
PCOs, RCPs and WLL Mobile including other mobile connections shall not qualify as Rural DELs for the purpose of this Agreement. RDELs installed on landline as also on any wireless technology and having fixed wireless terminals (FWTs) as subscriber end equipments qualify for subsidy support under this Agreement.
The effective date of Agreement is 01.04.2002.
The validity of the Agreement is 8 years from the effective date.
Under the Agreement, payment of one time front loaded subsidy (FLS) was made only for net additions of RDELs in a local exchange area. Net addition means the number of RDELs added after making adjustments of RDELs closed permanently on account of non-payment or shift out of local exchange area.
Subsidy is payable towards RDELs installed between 01.04.2002 and 31.03.2005. The equated annual subsidy, wherever payable, is to be given upto a maximum period of 5 years from the date of installation of these RDELs.
The USP may shift the RDELs during the validity of the Agreement as per demand of the customer. No subsidy support towards shifting of RDELs is payable to the USP. The USP shall be solely responsible for provision and operation of necessary equipment and systems, treatment of subscriber complaints, collection of call charges and issue of receipt thereof, attending to claims and damages arising out of operations The USP shall work within the framework of the terms and conditions of the basic service license
The SDCA wise representative rates at which front loaded and equated annual subsidy is disbursable are as given in Part IV 'Financial Conditions' of the Agreement Under the Agreement, USP was required to submit subsidy claims for the RDELs installed by it during the period 01.04.2002 and 31.03.2005 and made functional, for the FLS and the eligible Equated Annual Subsidy (EAS) for the period upto 31.03.2005 at one time in the prescribed formats and Attachments/Annexure. For submission of these claims, time upto 30.09.2005 was allowed. Subsequently quarterly EAS claims are required to be submitted by the USP in the prescribed forms and Attachments/Annexure thereto within 30 days from the close of the quarter.
The claims should be duly certified with an Affidavit by a representative of USP duly authorized by a resolution of the Board of Directors The quarterly statements of subsidy claims shall be required to be audited by the Auditors of USP and the report of the Auditors to be filed with the Administrator within seven days of the signing of the Audit Report but not later than 30th September of the following year.
The subsidy from the USOF shall be disbursed in four quarterly installments during each financial year. Each installment shall be disbursed quarterly in arrears. Subsidy for a quarter shall be disbursed after making adjustments, if any, for the payments made in the previous quarter.
Final adjustments, if any, in respect of excess or shortage in the subsidy disbursed shall be made in the following year based on the quarterly statements duly certified by the Auditors of the USP.
In case total amount disbursed for a financial year based on quarterly self assessment claims of the USP results in excess payment by more than 10% of the actual subsidy due to him, the entire amount of excess payment shall be recovered along with an interest at the prime lending rate of State Bank of India prevalent on the day the respective disbursement was made
In cases of faults for more than 7 days in a quarter, the subsidy shall be deducted proportionately for the total number of days the RDEL remained faulty during the quarter. In cases, however, where the RDEL remains faulty for 45 days or more in a quarter, no subsidy for the entire quarter shall be allowed. For those SSAs where equated annual subsidy is zero, Rs.250/- shall be taken as the notional rate of equated annual subsidy, at which the deduction shall be calculated.
RDELs that are closed permanently either on account of surrender, shift out of the SDCA or non-payment by the customer shall receive only the eligible EAS from USOF from the date of installation till the date they are permanently closed.
Subsidy claim from QE June 2008 onwards should be certified by concerned GM/DGM (TR) to the effect that information furnished in the claim tallies with billing record
PBG shall be submitted initially for one year which will be extended on similar terms for subsequent years.
For BSNL the requirement for submission of PBG has been waived as long as it is a 100% Govt. owned company