A.Gnanasekaran Jt.CCA USO

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A.Gnanasekaran Jt.CCA USO

• Office of CCA Mumbai

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USOF

• The universal service obligation fund (USOF)
  has assumed its statutory status in 2003 with the
  amendment to IT Act 1885.
• USOF is a non-lapsable fund with effect from
  01.4.2002.
• The Rules have been framed and notified on
  26.3.2004. vide IT (Amendment) Rules 2004 The
  Gazette of India Extraordinary Part II-section
  3-sub-section(i).

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Definitions-ITR 523

• Fund means the Universal Service Obligation Fund
  established under sub-section( I) of section 9A.
• Administrator means the Administrator of the
  Fund appointed by the Central Government of India
  for the administration of the Fund.
• Capital cost means the capital expenditure
  incurred on providing access as may be determined
  by the Administrator.
• Capital recovery means the aggregate of
  depreciation, interest on debt and return on
  equity on the capital cost annualized over a
  period of seven years.
• Net cost means operating expenses plus Capital
  Recovery minus Revenue.
• Operating expenses means the annual op-cost
  incurred on om of the specified facilities as
  may be determined by the Admin.

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Contd

• Revenue means the annual charges including usage
  charge and rental from the specified service,
  without any deduction of any kind whatsoever
  except taxes relating to the specified service,
  if any, paid to the Government.
• USO means the obligation to provide access to
  basic telegraph services to people in the rural
  and remote areas at affordable reasonable prices.
• USP means the person who has entered into an
  Agreement with the Administrator for the purpose
  of implementation of USO.
• VPT means the first public telephone installed
  in a village.

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What are the powers of Administrator

• Formulate bidding procedure/terms and conditions
• Evaluate the bids called for,
• Enter into agreement with USP.
• Settle the claim of USP after due verification.
• Specify relevant formats, procedures and records
  to be maintained and furnished by the USP.
• Monitor the performance of the USP as per the
  procedure specified by him from time to time.

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Scope of support from USOF

• Financial support from the Fund shall be provided
  to meet the NET COST of providing the specified
  USO as per the procedure specified by the
  Administrator from time to time, and the period
  for which such support shall be provided and the
  services covered shall be governed by an
  Agreement entered in to with the USP.

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India USOF in Global Context

• The USOF of India is one the few operational USO
  Funds in the world.
• The USOF of India has one the more complex
  mandates of operational USO Funds.
• The USOF of India is one of the largest
  operational USO Fund in the world.

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Nature of services supported by USOF

• Stream I OM of VPT in villages identified as
  per Census 1991.and
• Installation of VPTs in the additional villages
  identified as per Census 2001( Capital recovery
  shall be taken to arrive Net cost)
• Provision of additional RCP in villages with
  population exceeding 2000 after achieving the
  target of one VPT in every village.
• Replacement of MARR PTs installed before
  1.4.2002.
• Upgradation of VPTs to public tele information
  centres (PTICs)and
• Installation of high speed PTICs (HPTICs)
• Stream II covers RHDELs installed in identified
  Net High Cost SDCAs a)prior to 1/4/2002 and
• B)installed after 1.4.2002.(Provision of
  household telephones in rural and remote areas as
  may be determined by the central Government from
  time to time).

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Status of implementation

• As a part of NTP-99 agreement signed with BSNL
  for 19 service area so far and six BSOs( basic
  service operator)
• Agreement signed with BSNL for replacement of
  140210 MARR PTs installed prior to 1.4.2002

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Date of effect(decentralisation)

• Date of effect is 1.10.2003
• Om of VPTs for 2002-03 settled centrally
• Final settlement for 2002-03 and first quarter of
  2003-04 will be settled centrally
• Decentralisation shall be effective from QE
  31.12.2003 in r/o VPTs

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USO MH circle Mumbai

• There are three USPs in MH circle.
• M/S BSNL
• M/S TTML
• M/S RIL

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Status of USP-M/s BSNL

• An agreement has been entered into with BSNL for
  provision and maintenance of VPTs,RCPs,Un-covered
  villages andRHDELs.
• As on 31.3.2006 the CB in respect of
• VPTs--------------LL------WLL----- MARR-----
• RCPs
• Uncovered
• RHDELs

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USP-M/s TTML

• Has been authorized to provide and maintain VPTs
  and RHDELs
• As on 31.3.2006 the CB of
• VPTs-----------LL------WLL-----GSM-------
• RHDELs

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Status of USP-M/s RIL

• Has been authorised to provide and maintain RCPs
  and RDHELs.
• As on 31.3.2006 the CB of
• RCPs-------------LL----------CDMA----
• RHDELs

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What are the obligations on the part of USPs

• To provide telephones at the revenue
  villages/Rural areas as per Census 1991/2001 as
  the case may be as per agreement.
• To maintain those telephones and provide fault
  free service
• To submit claim on quarterly within 30 days from
  the date of closure of quarter.
• To submit claim duly singed by authorized person
  along with required documents.
• To certify that the claim has been submitted only
  for the lines installed and maintained as per
  agreement
• Certify that claim has been prepared at the
  approved rate after deducting for non-working
  period.

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Check list for acceptance of claims on submission

• The claim is received within time and in the
  prescribed format
• An affidavit in the prescribed proforma and a
  stamped pre-receipted bill are given
• Initials of authorized person are available on
  all pages of claim and consolidation sheet etc
• Hard copy and soft copy on CD (in read only form)

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Action to be taken for non-receipt of claims

• The claim should be submitted within 30 days of
  the end of a particular quarter
• Write to USP for submission within 15 days along
  with valid reason for delay
• On receipt of claim within 45 days inform USP
  that the final settlement is subject to
  condonation of delay by the Administrator

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Action on incomplete claims

• Claim statement including the Annex, attachments
  are complete but supporting documents not
  submittedAccept the claim and intimate USP that
  the settlement will be subject to submission of
  missing documents.

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What next

• Intimate H.Q about receipt of claim furnishing
  all details as per proforma-USP wise

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Check list for settlement of claims

• Condition 18.2 subsidy be disbursed within 30
  days of the commencement of the following quarter
  for vpts subject to---
• Condition 18.3 USP submit claim in the format
  prescribed along with Affidavit
• Condition 18.4 USP statement be audited by their
  auditor
• Condition 18.5 deduction for non working period
• Condition 18.6 stamped pre-receipted bill
• Condition 18.10 MARR VPTs on replacement shall
  not eligible for subsidy from the date of
  replacement.

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Verification of claims

• Hard copy and soft copy of the claims matches.
  otherwise hard copy be taken as authentic
• Representative rates of the SSAs and SDCAs as the
  case may be
• Names of SSAs matched as per claims and agreement
  
• Noof days taken correctly ie 90/91/92 as the
  case may be

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contd

• Consolidation sheet
• Total noof VPTs/RCPs/Rural DELs preferred and
  new installation under different tech.tallies
  with the figure shown
• OB tallies with CB of previous quarter
• Deduction for fault period (VPTs) ie
  proportionate deduction for gt7 days to lt45days
  and beyond 45 days no subsidyeffective from
  quarter beginning 01.10.2003(includes both days
  ie from and to)

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Contd

• No incremental metering and DNP shown for entire
  quarter not eligible for subsidy
• Date of installation /replacement should be shown
  in DD/MM/YYYY
• In case of replacement of VPTs other than MARR ie
  LL to WLL the representative rate of the
  existing or new tech whichever lower is payable

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Disbursement of subsidy

• Payable in arrears by cheque (quarterly) after
  adj if any
• Head of account FY 2004-05 onwards minor head
  103Compensation to service provider for USO
• Eg
• Dr 3275-00-103 (TACT Code)---Rs XX Cr 8670
  (Cheques and Bills)---------Rs XX
• After disbursement the corresponding aomunt will
  also be booked as deduct entry under the head
  3275 00 902Deduct amount met from USOF by
  debiting the Head 8235 00 902USOF as follows
• (-) Dr 3275-00-902 (TACT code 1508) (Rs XX)
• Dr 8235-00-118 (TACT code 2821)-------Rs XX
• Refer Proforma C, Enclosure I of chapter VII
  

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Action on transactions relating to USOF

• Payments are made within a week of receipt of
  Authorization from USOF
• In case of short payment, the balance amount is
  surrendered to H.Q
• Payments made are not in excess of allotment
• USO subsidy are booked correctly under the
  concerned accounting Heads

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Maintenance of records

• The following records needs to be maintained at
  CCA office
• 1.Claim submission register
• 2.Subsidy disbursement register
• 3.Subsidy booking register
• Refer proforma A,B C of Enclosure I to chapter 7

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Submission of returns to USOF HQ

• Intimation of claim receipt
• Requisition of fund
• Refer enclosure I of chapter 6

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Electronic submission of claims-VPT

• Refer http//demotemp.24.nic.in/opex/welcome.htm
• Name of village part of master data which can
  not be altered in due course by the USP
• Unique numeric code in SSA will be generated by
  the system administrator
• Dynamic data relating to period of fault,
  technology updates and field new installation is
  required to be keyed in quarterly by USP
• Once the claim is submitted changes can not be
  carried out here

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contd

• The list of report available to CCA
• Claim submission status
• Consolidation sheet for individual SSA
• Consolidation sheet for service area
• VPT status at the end of quarter for service
• Detailed claim statement of individual SSA
• For more details refer chapter 5 of instruction
  manual

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Check list for monitoring of VPTs

• Technology used subsidy rates differ match
  with tech
• Installation date after 1.4.2002date of
  installation as per records should tally with
  claim statement
• Date of replacement of MAAR VPTs upto one day
  prior to replacement at the rep rate of MARR and
  thereafter as per technology
• Duration of fault upto 7 days no deduction,
  more than 7 days but less than 45 days
  proportionate and more than 45 days no subsidy
  for the quarter

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contd

• Sample size for monitoring 5 of the numbers
  claimed SSA wise for all the SDCAs in the SSA
  ---during the year
• Each SSA should be visited for the purpose of
  sample check at least once a year
• The claim may be disallowed if the discrepancies
  are not rectified within a reasonable period
• Report on monitoring as per format prescribed
  referenclosure III to chapter 8 of mannual

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Powers of CCA vis-à-vis USPs

• No action like suspension, revocation termination
  or extension of agreement as specified in part I,
  general condition shall be initiated by the o/o
  CCA against the USPs in terms of the conditions
  of the agreement and its amendments thereof.

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Ref VPT related

• 1.File no .30-101/2002-USF(Vol-IV) dated
  10.7.2003 _at_ inclusion of Aurangabad SSA rep
  rate of MH circle. (MARR,LL,CDOT-PMP)
• 1A. File no 30-15/2002-USF dated 12.9.2003
  _at_transfer of work relating to disbursement
• 2.File no30-14/2002-USF dated 21.11.2003 _at_Outer
  limit for submission of claims
• 3.File no30-111/2003-USF dated 24.11.2003
  _at_rep rate for Wardha on GSM Tech
• 4.File no 30-107/2002-USF(Vol.IV) dated
  25.11.2003 _at_on modification of condition no
  18.6,part IV,Financial conditionsMARR
  replacement

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contd

• 5.File no30-101/2002-USF(Vol.IV) dated
  27.11.2003_at_ no subsidy for a VPT remaining non
  functional for any reason
• 6. File no 30-111/2003-USF dated 30.12.2003
  _at_for subsidy support towards OM---M/s TATA
• 7.same subject dt 12.3.2004 Inclusion of Latur
• 7A.file no 30-15/2002-USF (vol.II) dated 5.2.2004
  _at_transfer of work related
• 8.File no 30-107/2002-USF Dated 21.10.2004
  _at_Extension of time limit for replacement of MARR
  VPTs

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