The States of Arunachal Pradesh, Manipur & Nagaland were taken up for OFC augmentation in this scheme. An Agreement was signed with M/s RailTel Corporation of India Limited, the successful bidder, on 16.01.2012 as outcome of the tender for implementation of this scheme. Total 407 nodes (Blocks/ important towns) are to be commissioned in 36 Districts for which subsidy of Rs. 298.50 Crore is to be provided by USO Fund to M/s RailTel.
As per the request received from RailTel owing to the difficulties faced in North Eastern states, the rollout period has been extended to 54 months from the date of signing of the Agreement i.e. by 15.07.2016 for the states of Manipur and Nagaland and 60 months from the date of signing of the Agreement i.e. by 15.01.2017 for the state of Arunachal Pradesh.
As per the terms and conditions of the agreement signed, at least 70% of the subsidized bandwidth capacity, created under the scheme, shall be shared by M/s RailTel with the licensed service providers in the area at a rate not more than 27% of the current TRAI ceiling tariffs.