Page 3 : USOF Schemes:, Implementation Strategy, Identification of Locations, Formulation of Detailed Project Report (DPR), Approval of Project, Subsidy Modelling/ Financial Benchmarking, Tendering, Agreement Signing, Implementation Phase, Rollout Phase, Post Rollout Phase, Monitoring & Implementation of the schemes: USOF requires support, , from Controllers of Communication Accounts (CCA) for Monitoring &, Implementation of the ongoing schemes

Page 4 : Details of Streams &, Agreements, • No. of Streams - 6, • Closed Agreements - 13, • Ongoing Agreements - 21

Page 6 : Critical Role of CCAs, Arms of USOF Hq., , – Contributions to USO fund; levy assessment & collections, – Accurate & timely subsidy settlement, – Finalization of accounts, at the closure of scheme, – Issuing show-cause cum demand notice for o/s, recoveries, , Ears & eyes of USOF Hq., , – Role in ensuring compliance to „deliverables‟ of the, Agreement, – Subsidy claim verification & post-payment inspection, – Info. on dues, recoveries, claims/payments, – Feedback on Scheme‟s performance

Page 7 : Terminology to Know, •, •, , •, •, , DPRs, NIT, RFP, RFQ1., NIT: used in major construction projects where the Owner knows in, detail what they want. The invitation to tender document contains, detailed specifications , detailed qualifications and requirements, 2., Requests For Proposals (RFP): Used in situations where the client, either can‟t – or doesn‟t want to – define the Scope of Work up front, to an adequate level of detail. They need to rely on the experience, and creativity of subcontractors to define the best path to success., 3., Requests For Quote (RFQ): like the Tender, however typically, smaller in size and scope., Corrigendum, Agreements, MoU, Contract1., Agreement: A negotiated and legally enforceable understanding, between two or more legally competent parties., 2., MoUtype of agreement between, two (bilateral) or more, (multilateral) parties with convergence of will to have intended, common line of action, where the parties cannot create a legally, enforceable agreement., 3. Contract- A legally binding agreement which has (1) offer; (2), acceptance; (3) consideration; (4) mutuality of obligation; (5), competency and capacity; and, in certain circumstances, (6) a written, instrument.

Page 8 : BharatNet/NOFN, • BharatNet is planned to connect all the 2,50,000 Gram Panchayats, in the country for providing broadband connectivity in the Gram, Panchayats., • Non-discriminatory access to the network will be provided to all, the telecom service providers. These access providers like mobile, operators, Internet Service Providers (ISPs), Cable TV operators,, content providers can launch various services in rural areas., • Various applications for e-health, e-education, e-governance etc., will be provided. The project has been approved by Union Cabinet, on 25.10.2011.

Page 9 : Contd…, •, , The project is being executed by a Special Purpose Vehicle (SPV) namely Bharat, Broadband Network Limited (BBNL),, which has been incorporated on 25.02.2012 under Indian Companies Act 1956., , •, , On 30.04.2016, Telecom Commission approved to implement the project in, three phases., Phase-I: 1,00,000 GPs. under implementation. Being executed by 3 CPSUs viz., BSNL, RailTel and PGCIL. The project Cost is Rs.11,148 crore. The target has been, completed., Phase-II: The remaining 1,50,000 GPs (approx.) are targeted to be implemented by, December-2018. The Project Cost is Rs. 30,920 crore. The implementation is to be, done through State Model, Private Sector Model and CPSU Model by using an, optimal mix of media (OFC, Radio and satellite) to connect GPs., Phase-III: Futuristic network with ring topology to be used between districts and, blocks and blocks and GPs. Targeted to be completed by 2023., , •, •, , •

Page 10 : BharatNet Phase-I Status, • NOFN approved by Cabinet in Sept, 2011 to connect all the GPs by, broadband., • Physical implementation work, taken up after June, 2014., • Phase-I to connect 1 lakh GPs, completed in December, 2017., • Service Provision is being taken, up through Service providers,, CSC, States., , Activity, OFC, connected, GPs, OFC cable, Laid (in, Km), , Status, (As on 18-112018), 1.20 lakh, , 2.92 lakh, , Service, Ready GPs, , 1.16 lakh

Page 11 : BharatNet Phase II, •, , •, , •, , On 19.07.2017, the cabinet has approved “Modified Implementation Strategy, of BharatNet towards Realisation of Vision of Digital India” i.e. BharatNet, Phase-II., BharatNet Phase-II is planned to connect remaining approx. 1,50,000 GPs, directly to BHQs by an optimal mix of media, i.e., aerial OFC on existing, electricity poles, radio and satellite for speedier deployment and, underground OFC, as being done for Phase-I., Implementation of the project is proposed through States and States‟, agencies, CPSUs; and Private Sector agencies. Project is targeted to be, completed by March 2019.

Page 13 : Sections in Agreement, I., , Agreement, –Details of parties in agreeement, purpose, , II., , General Conditions, – Date of effect, Validity of agreement, Scope/target,, , III. Operating Conditions, –Roll-out, Commissioning, Performance, etc, , IV. Technical Conditions, –Details of Scheme, Technology approach, QOS, Inspection, etc, , V., , Financial Conditions, •, , Subsidy structure & phasing from date of installation, procedure of claim submission,, Liquidated damages, fund release, inspections, annual auditor, Performance Bank, Guarantee, etc.,, , VI. Commercial Conditions, –, , Tariffs, display of information, , VII.Definitions

Page 14 : Financial Conditions, • USOF would fund the entire Capital Expenditure, (Capex) and Net Cost of Operating Expenditure, (Opex) net of Revenue streams for a period of, five years w.e.f. 25.02.2012. BBNL will strive to, become self-sustaining during this period, , • Suitable incentives would be provided to BBNL, for maximizing revenues.

Page 15 : Contd..., • The Net Cost for establishing and maintaining, NOFN will be funded by USOF based upon, approved bids., • The absolute amount of the entire Capital, Expenditure and Net Cost of Operating, Expenditure net of Revenue [inclusive of, administrative expenses] shall be subject to, approval by the Telecom Commission.

Page 16 : Contd..., • Explanation:, Net Cost = Capex + (Opex - Revenue)., , • Funding from USOF will depend on the, following three factors, i. Requirement of Fund, ii. Physical Progress of the project, iii. Approval of Telecom Commission/DoT

Page 17 : Contd..., • Financial estimates are not made at the time of, agreement., • Initial funding under this agreement is restricted to, Rs.20,100 crores., • This amount will be revised whenever the net cost is, determined and approved by Telecom Commission.

Page 18 : Contd..., Sanction Order: Sanction Order for payment of subsidy shall be, issued with the approval of the Administrator. The payment, to BBNL may be effected centrally and/or Circle-wise, depending on the requirement and stage of completion of the, Project., Mode of Payment: Disbursement of subsidy shall be by, cheque/electronic transfer of fund through the Cash Section,, DoT HQ, Sanchar Bhawan on the basis of the Sanction Order, till payment to BBNL is effected centrally by USOF.

Page 19 : Contd..., • No interest shall be payable for any short/late payment made, to BBNL by the Administrator, USOF., • Bank Guarantees: Performance Bank Guarantee (PBG) is not, required from BBNL so long as BBNL continues to be wholly, owned by the Government of India., • Release of Funds under Opex: The guidelines, procedure and, requisite forms for release of funds under Opex net of revenue,, verification procedures subsequent to release and utilisation of, the fund would be issued separately.

Page 20 : Schedule for Fund Release under Capex, Details of Release, of Funds, , Payment Process, , Will be paid as mobilisation advance on requision of fund from, BBNL, 1. Demand & utilisation Certificate to be provided., 2. Release of funds should match with progress of Project., upto 25%, 3.Physical progress should be proportinate with Financial, Expenditure., 1. 55% of Physical progress to be completed 2. Matching of the beyond 75%, physical and financial progress has to be submitted, District/State/Circle-wise., for every 5% increase in physical progress, 5% of the fund shall be, every 5%, released upon requisition for the same, Certificate to the effect of 100% physical completion of the physical, Cumulative upto, targets has to be furnished within 2 months of release of last, 95%, installment., 10%, , Balance 5%, , Material, Procurement, , Will be released after one year of commissioning, 1.On requisition by BBNL, fund for material procurement to the, extent of 95% of the cost of materials shall be released., 2.The balance 5% shall be released by USOF, upon requisition,, after completion of specified period as per BBNL's contractual, obligation with their vendors/suppliers after material, has been put to use/commissioned

Page 21 : Thank You