The project entails installation of new Village Public Terminals (VPTs) after 30.06.2003 in replacement of Multi Access Radio Relay (MARR) VPTs followed by their operation and maintenance. M/s BSNL was the Universal Service Provider (USP) for the project and the agreement was signed in September 2003. The project was made effective from 01.07.2003 with a validity of 9 years.

The subsidy for the project was payable as and when MARR VPT was replaced by a fully functional VPT and was eligible for subsidy support upto 7 yrs from the date of replacement of MARR VPT. The Universal Service Provider could also change the location of VPTs to provide better access to the public within the same village.However, no subsidy support was extended for relocating the VPTs by Universal Service Obligation (USO) Fund against the expenditure incurred on relocation.

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

Subsidy claims are to be submitted by USP in four quarterly instalments in the prescribed form and the Annexure/Attachments thereto within 30 days from the close of the quarter. The subsidy from the USOF shall be disbursed in four quarterly instalments during each financial year. Each instalment 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 the 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 VPT remained faulty during the quarter. In cases, however, where the VPT remains faulty for 45 days or more in a quarter, no subsidy for the entire quarter shall be allowed.

With effect from the quarter ending 30.09.2004, VPTs that remain disconnected on account of non-payment and VPTs that register no incremental meter reading during the entire quarter shall not qualify for any subsidy support for that quarter (vide letter no. 30-101/2002-USF dt 14.09.04).

Claims from QE December 2007 onwards, should contain a list of NIMR/Closed/DNP VPTs.

VPTs 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 ( vide USO letter no. 1-1/2008-USOF dated 6th May 2008).

The Roll out period for replacement of MARR VPTs in the service area for which Agreement is signed is 5 years and 9 months from the effective date of Agreement i.e. by 31.03.09 (Roll out conditions were modified vide USO Tech letter no. 30-107/2007-USF(Vol-VI) dt. 21.11.08, circulated vide USO Finance.

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