The project was designed to facilitate operation and maintenance of Rural Household Direct Exchange Lines (RDELs) installed between 01.04.2002 and 31.3.2005 in the specified Short Distance Charging Areas (SDCAs). The project was effective from 01.04.2002 and was valid for 8 years.

PCOs, RCPs and WLL Mobile including other mobile connections were not qualified as RDELs under the project. RDELs installed on landlines as also on any wireless technology and having fixed wireless terminals (FWTs) as subscriber end equipment qualify for subsidy support under the project.

Under the project, payment of a one-time front-loaded subsidy (FLS) was made only for net additions of RDELs in a local exchange area. The subsidy was payable towards RDELs installed between 01.04.2002 and 31.03.2005. The equated annual subsidy, wherever payable, was to be given up to a maximum period of 5 years from the date of installation of these RDELs.

The USP was responsible for the provision and operation of necessary equipment and systems, treatment of subscriber complaints, collection of call charges and the issue of receipt thereof, and attending to claims and damages arising out of operations. 

Roll Out

The subsidy from the USOF was disbursed in four quarterly installments for each of the financial year. Each installment was disbursed quarterly in arrears. 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.

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 claims from QE June 2008 onwards should be certified by the concerned GM/DGM (TR) to the effect that information furnished in the claim tallies with the billing record

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