INDIA NON JUDICIAL

of Delhi
GOvernment of National Capital Territory

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Certificate No. IN-DL80214863862972U

Certificate Issued Date 29-Aug-2022 02:45 PM

Account Reference IMPACC (V)/ dl1027003/ DELHI/ DL-DLH

SUBIN-DLDL102700341247212999105U
Unique Doc. Reference
BHARAT SANCHAR NIGAM LIMITED
Purchased by
Description of Document Aricle 5eneral Agreément
Property Description Not Applicable
Consideration Price (Rs.)
(Zero)
First Party ar BHARAT:SÅNHAR NIGAM LIMITED
USOF DEPT OF TELECOM
Second Party
Stamp Duty Paid By BHARAT SANCHAR NIGAM LIMITED
100
Stamp Duty Amount(Rs.) (One Hundred only)

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******************************************************* Please write or type below this line *****************m.--..

Agreement For Support from USO Fund For Operation and Maintenance, First Line
Maintenance of BharatNet Phase-I Network

Between

Universal Service Obligation Fund, Department of Telecommunications AND Bharat

Sanchar Nigam Limited

ASHI KAPOOR)
Apiatator (T-1t) US
9 1 3 22
Statutory FOet. of Govt. ofdi
MUKESHMAN
1.The authenticity ah i h o u l d be verified at www.shcilestamp.com or using e-Stamp Macp'SRHding
Any discrepancyin thedetaifs on this Certificate and as available on the website / Mobile App renders iNLCorporate Office
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 Agreement
For

Support from USO Fund

For

Operation and Maintenance, First Line Maintenance of

BharatNet Phase-I Network

Under

Universal Service Obligation Fund

The Indian Telegraph (Amendment) Rules, 2012

No.- 30/13/2021/USOF/BBNL Dated: 29/08/2022

TOTAL PAGES- 21

GOVERNMENT OF INDIA
MINISTRY OF COMMUNICATIONS
DEPARTMENT OF TELECOMMUNICATIONS
OFFICE OF THE ADMINISTRATOR (USOF)
20, ASHOKA ROAD, NEW DELHI-110001, INDIA

na
AduniP.hqT-1j UBDF.
nt , Got. of
MUKESH MAFA
GM (Bharat iat-il)
BSNL Corp tOfice
New Delh
 SECTION-I
AGREEMENT

No. 30/13/2021/USOF/BBNL
Government of India
Department of Telecommunications

Office of the Administrator, USO Fund

20, Ashoka Road, SancharBhawan, New Delhi-110001

AGREEMENT
The Agreement is made and entered into on the 29" day of August, 2022

Between

The President of India, acting through the Administrator, Universal Service Obligation Fund
(USOF) who for the purpose of this Agreement is being represented by Shri Ashi Kapoor
Deputy Administrator (T-1), Universal Service Obligation Fund Department of
Telecommunications under Government of India and having its office at 2n Floor, Sanchar
Bhawan, 20 Ashoka Road, New Delhi 110001, (hereinafter refered to as the
"Administrator", which expression, unless repugnant to the context or meaning
thereof, shall include its successors, administrators or assignees;) of the First Part
AND
M/s Bharat Sanchar Nigam Limited, a company registered under the Companies Act 1956,
having its registered office at Bharat Sanchar Bhawan, H.C. Mathur Lane, New Delhi-110
001, acting through Shri Mukesh Mandal, GM (BN-1I), BSNL Corporate Office, Bharat
Sanchar Nigam Limited, the Authorized Signatory (hereinafter called BSNL which
expression, unless repugnant to the context or meaning thereof, shall include its
successors, administrators or permitted assignees) of the Second Part.

The 'Administrator and 'BSNL' shall hereinafter individually be referred as Party' and jointly
as Parties.

NOW THIS AGREEMENT WITNESSETH AS FOLLOWS:

In consideration of the mutual covenants set out in this Agreement, the parties hereby agree
as follows

1.1 This Agreement is divided into five Sections. Apart from the present Section-1, other
Sections are as under

II. General Conditions

I1. Operating Conditions
IV. Financial Conditions
V. Definitions

All the Sections and Annexures together form the Agreement.

Page 2 of 21

MUKESH MANZAL
R) GM(Bhaa
.Agrwsirat TI UBOF BSNL Corporate Office
New Deini
1.2 No Partnership - Nothing in this Agreement shall be construed to constitute aa
partnership or agency between the Parties and BSNL shall not make any assurance,
promise or covenant nor shall hold itself out as competent to do so, on behalf of the
Administrator nor shall pledge the credit of the Administrator for any transaction in relation to
this Agreement.

1.3 No Employment Nothing in this Agreement shall constitute an offer or assurance of

employment of any nature whatsoever to BSNL or any person employed by or under him for
this Agreement.

1.4. Indemnity-BSNL shall indemnify and at all times keep the Administrator indemnified
and harmless against any direct loss to it or any claims by any third person, for any personal
injury to anybody or loss to property, movable or immovable, caused by or attributable to any
act or omission of BSNL or any of his officer, employee, agent or professional etc. while
performing or purporting to perform this Agreement.

1.5. Waiver Neither the failure of either Party to insist on any occasion upon the
performance of the provisions of this Agreement nor time or other indulgence granted by a
Party to thee other Party shall be treated or deemed as waiver of such breach or acceptance
of any variation or the relinquishment of any such right thereunder. Waiver by either Party of
any default by the other Party in the observance or performance of any provision of this
Agreement shall not operate or be construed as a waiver of any other or subsequent default
or of other provisions of or obligations under this Agreement nor shall affect the validity or
enforceability of this Agreement in any manner.

1.6. Severability of Terms - If for any reason whatsoever, any provision of this
Agreement is or becomes invalid, illegal or unenforceable or is declared by any court of
competent jurisdiction or any other instrumentality to be invalid, illegal or unenforceable, the
validity, legality or enforceability of the remaining provisions shall not be affected in any
manner.

IN WITNESS WHEREOF, the parties hereto set their hand on the Agreement through their
duly authorized representatives, at New Delhi on the day, month & year first above written.

Page 3 of 21

(AgMAPO JR) MUKESH MANA

Dy. Aceurystrotur (T-U). UO GM(Bh7r iNE)
BSNL Corpor e Cfice
New Deln1
 Signed for and on behalf of President of India

By Shri Ashi Kapoor

Deputy Administrator (T-II)
Universal Service Obligation Fund,
Department of Telecommunication

Signed on behalf of Bharat Sanchar Nigam Limited by, authorized signatory BSNL

29 32022

By Shri Mukesh Mandal,

GM (BN-I), BSNL Corporate
Bharat Sanchar Nigam Limited
Office

In the presence of:

Witnesses:
1.
Signature: 24820

iu HEIu (4Ta *e-1)

Bharat Sanchar Nigam Ltdincipal General Manager(BN-I)
.S.NL. Corporate Office, New Delhi

2. a r g 20

Signature
(RAJESH GUPTA)
Universal Service Obligationer d m)u
Department of Telecoinnator
(Toch.& Admn.) usOF
Sanchar Bhawan, Ash6Ra'Eg AADENI"Tfbo01

Page 4 of 21
MUKF NAL
GM ,i2irt-)
nsHi KAPO.R) BSNL 3te Office
Dy. Admnnisttak R
 SECTION-II
GENERAL CONDITIONS
2.0 Digital Communications Commission (DcC) has approved the handover of Operation
and Maintenance (O&M), First Line Maintenance (FLM) and Utilization of BharatNet (except
State-led model under phase-l) to BSNL from 01.04.2022 and authorized BSNL to award
work to a professional agency for SLA based O&M and FLM of BharatNet phase-l network
throughan open and competitive bidding process vide letter No: 30/13/2021/UsOF/BBNL
dated 27.05.2022. This Agreement, signed by BSNL with the Administrator USOF, shall be
subject to the terms and conditions defined below.

2.1 Scope of the Agreement

2.1.1 BSNL shall operate & maintain the OFC network of BharatNet Phase-I and its
associated infrastructure through professional agency (ies) (Fiber Maintenance Agency (ies)
or FMA) on Service Level Agreement (SLA) basis as per the tender finalized by BSNL for
comprehensive AMC of BharatNet Phase-I network.
2.1.2 BSNL shall be executing and supervising agency for Operation and Maintenance of
BharatNet Network of about 5 lakh RKM OFC route (about 3.10 lakh RKM incremental OFC
and about 1.91 lakh RKM of leased OFC) and its associated equipment through its vendors
finalized through open and competitive bidding process.
2.1.3 BSNL shall provide required number of fibres on lease till the Fiber Point of
Interconnect (FPOI) subject to availability for connecting the Gram Panchayats (GPs) on
GPON technology. The number of fibres to be leased shall be decided on need basis from
time to time.
2.1.4 BSNL shall provide the space and infrastructure on lease for installation and O&M of
BharatNet Optical Line Terminal (OLT) and associated equipments at the locations identified
for BharatNet project.
2.1.5 USOF shall make payment to BSNL as per Financial Conditions of the
Agreement.
2.1.6 The leased fibre replaced by FMA under Scheduled Planned Maintenance of
network, One time Planned Project / Maintenance works and replacement of damaged OFC
or fiber replacement done under any other USOF funded project/scheme shall become the
asset of USOF and the length of fibre replaced shall be deducted for payment from the Fibre
Leasing charges. BSNL shall keep, every details of the same, Circle wise and make it part of
the relevant invoices for payments on quarterly basis.

2.2 Validity of the Agreement and its extension

2.2.1 The Agreement in respect of O&M, FLM of OFC network as defined in clause 2.1.1
shall be valid for a period of one year from 1 July 2022 and it is further extendable for one
more year with mutual consent of both the parties.

2.2.2 The agreement in respect of Leasing of BSNL's fiber and space & infrastructure as
defined vide clauses 2.1.3 and 2.1.4 shall remain valid for a period of two
years commencing
from 1st July 2022. Extension if any of this shall be done either on existing terms or on
mutually agreed tems.
Page 5 of 21
MUKEC
GM
(S KAPO.)R) BSNL C ffice
Dy. Aemmstratd (T-Hj UsDF.
NEW iiili
 2.3 Modifications in the Terms and Conditions of Agreement
The agreement can be modified at any time with mutual consent of both the parties.

2.4 Requirement to furnish information

BSNL shall furnish to the Administrator, on demand, such documents, accounts, estimates,
returns, reports or other information as may be called for by the Administrator.

2.5 Suspensions, Revocation or Termination of Agreement

2.5.1 The Administrator reserves the right to revoke the Agreement at any time in public
interest by giving a notice of 60 days counted from the date of issue of such notice.

to determine
2.5.2 Wherever considered appropriate, Administrator may conduct an inquiry
and conditions of the
whether there has been any breach in compliance of the terms
all reasonable facilities and shall
Agreement and during such inquiry BSNL shall extend
endeavor to remove the hindrance of every type.
of Service as described
2.5.3 It shall be the responsibility of BSNL to maintain the Quality
in this Agreement, during the period of notice for termination of Agreement.

2.6 Disputes Settlement

2.6.1 Except otherwise provided in this Agreement in the

event of any question or

interpretation of any clause, dispute or difference or to any other claim, right, matter or thing

whatsoever in any way arisingout or relatingto this agreement whether arose during the

orogress of the work or after the cancellation,

termination, completion or abandonment
thereof shall be first referred for conciliation between BSNL and Administrator. If the
conciliation does not lead to settlement of the dispute within 60 days, the matter shall be,
referred thereafter to Secretary Telecom or his nominee not below the rank of Additional
conciliation/mediation efforts is not able to settle any
Secretary for mediation. Further, if the
of the provisions of this
dispute or difference relating the interpretation and application
mechanism namely Administrative Mechanism for
agreement made between the parties a
Resolution of Central Public Sector Enterprises (CPSEs) and Government Department(s)/
Organization(s) Disputes (AMRCD) shall be taken up by either party for its resolution through
AMRCD in terms of the procedure settled or prescribed under the Official Memorandum
dated May 22, 2018 issued by Department of Public Enterprises, Government of India.

2.6.2 Notwithstanding any dispute or claim of the pendency of any arbitration/ conciliation/
mediation or other proceedings, BSNL shall continue to provide the service for the whole

duration of the Agreement.

Page 6 of 21
MUKESH
(SHI KAPOOR) GM( it-lI)
y. Adnnistratit (Tell UsOF BSNL Corg e Office
New Deihi
2.7 Force-Majeure

2.7.1 If at any time, during the continuance of the Agreement, the performance in whole or
in part, by either party, of any obligation under this is prevented or delayed, by reason of war,
or hostility, acts of thee public enemy, terrorism, civic commotion, sabotage, Act of State or
direction from Statutory Authority, explosion, epidemic, quarantine restriction, strikes and
lockouts (not limited to the establishments or facilities of BSNL), fire, floods, natural
calamities or any act of GOD (hereinafter referred to as EVENT), provided notice of
happenings of any such EVENT is given by the affected party to the other, within 10
Calendar days from the date of occurrence thereof, neither party shall, by reason of such
event, be entitled to terminate the Agreement, nor shall either party have any such claims for
damages against the other, in respect of such non-performance or delay in performance.
Provided SERVICE under the Agreement shall be resumed as soon as practicable, after
such EVENT comes to an end or ceases to exist.

2.7.2 The decision of the Administrator as to whether the service may be so resumed (and
the time frame within which the service may be resumed) or not, shall be final, binding and
conclusive.

2.8 Set off Clause

In the event any sum of money or claim becomes recoverable from or payable by BSNL to
the Administrator either against the Agreement or otherwise in any manner, such money or
claim can be (without restricting any right of set off for counter claim given or employed by
law) deducted or adjusted against any amount or sum of money then due or which at any
time thereafter may become due to BSNL under this Agreement or any other Agreement or
Contract between the Administrator and BSNL provided any such deduction or adjustment
will be made only after giving prior notice by the Administrator to CMD BSNL.

2.9 Other Obligations

2.9.1 BSNL shall be bound by the terms and conditions of the Agreement as well as by
such orders/directions/regulations/ guidelines issued by DoT/TRAI from time to time and
instructions as issued by the Administrator.

2.9.2 The provisions of the Indian Telegraph Act, 1885 or the Indian Wireless Telegraphy
Act, 1933 as amended or replaced, the Rules made and orders passed under these statutes,
so far as applicable, shall be binding on BSNL

2.9.3 BSNL represents and warrants to the Administrator that

It is duly organized and validly incorporated under the laws of India, and has full
power and authority to execute and perform its obligations under this Agreement;
ii) It has taken all necessary corporate and other actions under applicable laws for
execution and delivery of this agreement and to validly exercise its rights and perfom
its obligations under this agreement.
It has the financial standing and capacity to undertake and perform the obligations in
accordance with this Agreement,

Page 7 of 21

S H KAPODR
MUK PAL
GM n a 2tl)
BSNL Office
Newii
De
iv) This Agreement constitutes its legally valid and binding obligation, enforceable
against it in accordance with the terms hereof, and its obligations under this
Agreement will be legally valid, binding and enforceable obligations under it in
accordance with the tems hereof
The execution, delivery and performance of this Agreement will not conflict with,
v)
result in the breach of, constitute a default under, or accelerate performance required
by, any of the terms of its memorandum and Articles of Association or any Applicable
law or any covenant, contract, agreement, arrangement, understanding, decree or
order to which it is a paty or by which it or any of its properties or assets is bound or
affected

MUKESH MANDAL
GM (Bharat Net-ll)
BSNL Corporate Office
New Delhi

(r *T)
(ASHI KAPOOR
Or. Adnudstent (T-II U80F,

Page 8 of 21
 SECTION-III
OPERATING CONDITIONS
The terms and conditions of the, NLDO or BSO or CMTS or UASL or UL License
3.0
Agreement and any future evolution of licenses from time to time, as applicable, shall prevail
and shall be binding mutatis mutandis. The same shall also be applicable in case of

migration to or award of new license in lieu of the NLDO/BSO/ CMTS/ UASL/UL license.

3.1 BSNL shall be responsible for 0&M, FLM of BharatNet OFC network and necessary
equipments and agency (ies) under BharatNet Phase-
systems, through professional
covered in this Agreement.

3.2 Broad Scope of work

Preventive and Corrective Maintenance of OFC routes and GPON equipment through
)
SLA based award of work to professional agency.
One-time Planned Project/ Maintenance works and replacement of damaged OFC.
ii) Scheduled Planned Maintenance of network.
iv) First Line Maintenance of GPON Equipment and provision of spares.
One time repair of faulty GPs.
Providing Space and infrastructure for OLTs installed in BSNL exchanges.
vi)
vii) Leasing of BSNL fibers till the fibre point of interconnect (FPOI) for connecting the
Gram Panchayats (GPs) on GPON technology.

3.3 Fiber Leasing

3.3.1 BSNL shall provide the dark fiber from its Underground Optical Fiber and lor Aerial
Optical Fiber as the case may be at the rate of Rs.18,000/- per fibre Km per Annum
excluding taxes for first fibre. Taxes as applicable will be paid. In case, mutiple fribers are
leased in the same cable, the additional fibers shall be considered for payment at the rate of
Rs. 15,000 perfibre per Km per Annum. BSNL shall provide discount Rs. 10,000/- per
OFC route Km (RKM) in lieu of O&M of the same being reimbursed by USOF.

3.3.2 The leased fibre replaced by FMA under Scheduled Planned Maintenance of
network, One time Planned Project / Maintenance works and replacement of damaged OFC
or fiber replacement done under any other USOF funded project/scheme, shall become the
asset of USOF and the length of fibre replaced shll be deducted for payment from the Fibre
Leasing charges. BSNL shall keep, every details of the same, Circle wise and make it part of
the relevant invoices for payments on quarterly basis.

MUKESH MANDAL
GM (Bharat Net-ll)
BSNL Corporate Office
New Delhi
Page 9 of 21
(r
(SHI KAPOOR
T ( u)
uS0F
strato (-U)
Dy. Ad
3.4 Space and Infrastructure

The charges for space and infrastructure at every BharatNet OLT location will be as per the
classification of cities towns vide Govt. of India Department of Expenditure O.M. No.
2(13)/2008-E.II (B) dated 29.08.2008 and modified vide Govt. of India Department of
Expenditure O.M. No. 2/5/2017-E.I(B) dated 07.07.2017. Charges on the basis of
classification of cities/towns for: (a) building space and (b) infrastructure services shall be as
mentioned in Clause 3.4.1 and 3.4.2 herein.

3.4.1 Charges for Building space

Round off Charges w.e.f

S.N. Classification of BSNL rate of Discount
01.07.2022 (Rs. Per
cities/ towns* Charges as on
01.07.2022* annum

per bay)
1 2,12,681 20% 1,70,145
2 Y 1,65,419 20% 1,32,335
91,901 20% 73,521

The rates are based on BSNL tariff circular issued for every financial year and will be
enhanced by 10% in every financial year. GST as applicable will be extra.

3.4.2 Misc. Infrastructure Service Charges

S.N. Classification of BSNL rate of Discount Round off Charges

cities /towns* Charges as on w.e.f01.07.2022(Rs.
01.07.2022* Per annum per bay)
10,21,107 20% 8,16,886
9,18,9966 20% 7,35,197
6,89,245 20% 5,51,3963
The rates are based on BSNL tariff circular issued for every financial year and will be
enhanced by 10% in every financial year. GST as applicable will be extra.

Note: In case DC power requirement will be more than 10A per transmission bay, then
proportionate increase will be applicable. Other terms and conditions remain
same.

3.4.3 BSNL shall maintain the OLT infrastructure for at least 99% of time, on monthly basis.
For below 99% uptime, the payment shall be made on pro-rata basis in infra service
charges
(3.4.2 above) (i.e. Monthly Charges multiplied by Percentage of Monthly Uptime).
3.4.4 No payment shall be paid for OLT infrastructure service charges (3.4.2 above), where
uptime of an OLT is below 70% for that month.

3.4.5 Invoices submitted by BSNL are to be finalized in 60 days time from the date of
submission subject to submission of invoices complete in all respect.

Page 10 of 21 MUKESH MANDAL

GM (Bharat Net-ll)
BSNL Corporate Office
FOR) New Delhi
> l 4 . t . a T-11) U.S.0.F.
3.5 NETWORK OPERATIONS RECORD

BSNL shall keep a record of the OFC transport network covered under the scheme, along
with the equipment details and OFC connectivity of nodes, network bandwidth created and
provided to various Service Providers, types of traffic transported from different nodes and
also maintain Service Provider-wise and node-wise faults and rectification reports of the
OFC system and associated infrastructure and other related details in respect of the service
rendered, which will be produced before the Administrator or TRAI, as and when and in
whatever form desired. To improve the technical feasibility of reports, the Network Operation
Centre (NOC) will be upgraded suitably with support from USOF.

3.6 PERFORMANCE LEVEL

3.6.1 BSNL has been assigned the work of 0&M and FLM of BharatNet (except State-led
model under Phase-) and its associated fiber network through various vendors by an open
and competitive bidding process. The role of BSNL is only executing and supervising
agency through its vendors. The penalty/ incentive will be applicable on its vendors as per
terms and conditions of the tender. However, BSNL is subject to indirect penalty as
Administrative Expenses and Establishment Charges (AE&EC) is payable to BSNL as
percentage of vendor payment.

3.6.2 The Service Level Agreement, penalty and incentive as per tender terms and
conditions are enclosed as Annexure-.

3.7 RIGHT TO INSPECT, TEST AND MONITOR

The Administrator or his authorized representative shall have the right to inspect the OFC
network, the associated nodes. BSNL will provide the necessary facilities at its own cost for
monitoring of the system, as required by the Administrator or its authorized
representative(s). The Inspection will ordinarily be carried out after reasonable notice except
in circumstances where giving such a notice will defeat the very purpose of the inspection.

3.8 Monitoring Mechanism

3.8.1 BSNL shall make available the real time data of operational status of the OLTs/ONTs
(GPs), Wi- Fi Access Points, FTTH connections etc. through web and app. based access to
USOF and all stake holders. All the reports which are feasible at the moment will be
provided. The monitoring mechanism will be integrated with USOF PM tool.

GPs up/down (incl. progress during the week)

FTTH live on NOC
li) FTTH time series data for last 12 months
iv) Data consumption time series for last 12 months
OLTs up/down (incl. progress during week) - Including time series for last 12 months
V)

Page 11 of 21

TINAFOER MUKESH MANDAL

GM (Bharat Net-11)
D d u s l r s t o (7-14 US0.F,
BSNL Corporate Office
New Deih
All the above reports, which are being providedtil 30.6.2022, will continue to be provided.
However, after the NOC is upgraded rest of the report will also be provided.

3.8.2 The following standing committees shall ensure monitoring/steering of the 0&M of
the BharatNet project under this
Agreement

) Empowered Committee at DoT: Chaired by Secretary (T), the committee is

empowered to decide on any new issue or modification pertaining to operation and
maintenance of the network.

State Broadband Committee The convener ofthe committee at the State level shall
bring in agenda of the operational status of Gram Panchayats in the State along with
any issues pertaining with State Government such as issues related to power
connections, building issues, security of equipment, OFC damages etc.

ii) District /BA Level Telecom Committee The convener of the committee shall also
include agenda related to O&M of BharatNet and status of BharatNet O&M in the
meetings with any issues related to the district required for the improvement of
uptime of the network.

3.8.3 Management committee of BSNL is empowered to take decisions on day to day

issues pertaining to O&M of BharatNet under this Agreement including one time repair of
GPs, length of replacement of OFC under planned maintenance/shifting of GPs,
procurement of spares, etc within the overall expenditure approved by DCC under intimation
to USOF.

MUKESH MANDAL
GM (Bharat Net-ll)
BSNL Corporate Office
New Delhi
ASHI KAPOOR)

D . Admwniatrafor US0.

De

Page 12 of 21
 SECTION-IV
FINANCIAL CONDITIONS
4. Payment Schedule
4.1 The payment from USOF to BSNL includes preventive and corrective maintenance
cost of OFC, cost of FLM including spares, one-time replacement of damaged OFC network
and repair of faulty GPs, scheduled maintenance of OFC network on annual basis,
Administrative Expenses and Establishment Charges (AE&EC), payment of leased OFC
charges and payment of space & infra charges.

4.2 BSNL shall raise separate invoice/requisition for each item of work including
mobilization advance namely O&M of OFC Network, Space & Infra Charges and Fiber
Leasing Charges.

4.3 0&M of OFC network of BharatNet Phase-I and its associated infrastructure

4.3.1 The payment from USOF to BSNL towards 0&M of OFC network of BharatNet
Phase-I and its associated infrastructure through outsourced Fiber Maintenance Agencies
(FMAs) will be made as per actuals based on tender discovered cost or other reasonable
method, if required, within the prescribed guidelines.

4.3.2 Taxes, if any, shall be paid on actuals. Any input Tax Credit Generated and availed
by BSNL shall be adjusted against the project cost.

4.3.3 The AE & EC shall be payable to BSNL at the rate of 16.5% of basic cost on the
actual paid amount to the vendor as per its contract. GST on AE & EC amount will be paid
extra.

4.3.4 Initially, Payments towards OFC Network maintenance (inclusive of GST amount)
shall be made to BSNL for one quarter in advance by USOF. BSNL will raise claims on
quarterly basis in arrears along with actual payment certificate for the quarter to the vendor
duly certified by GM (Finance)/IFA of BSNL Circles, to the respective Controller of
Communication Accounts (CCAs) being the nodal agency. The annual utilization certificate
duly certified by statutory auditor shall also be submitted by BSNL. The advance for the
quarter shall be adjusted I refunded during the last quarter of financial year. Subsequently.
advance for first quarter for the new financial year shall be made to BSNL and
adjusted/refunded in the last quarter of financial year on the same lines as above.

4.3.5 The 50% advance for planned maintenance and planned shifting shall also be paid
along with advance as stipulated in clause 4.3.4.

4.3.6 The payments shall be made as per the Service Levels prescribed in BSNL tender
and payment shall be made accordingly.

Page 13 of 21 MUKESA MANDAL

GM (Bharat Net-)
BSNL Corporate Ofice
New Delhi
I
4.3.7 The 100% advance for cost of spares to be procured (5% of OLT cards and 10% on
ONT and accessories) on placement of PO will be paid by USOF along with advance as
stipulated in clause 4.3.4.

4.3.8 Advance for one time repair of faulty GPs will be paid at the time of Agreement for
approximately 20% GPs @Rs 10,000 per GP. At the end oftwo months another tranche for
approximately 20% GPs @Rs, 10,000 per GP will be paid. These amounts are over and
above the advances stipulated in above clause 4.3.4.

4.3.9 The sanction for the advance adjustment will be given in 60 days from the date of
submission of invoices, and utilization certificate, subject to submission of invoice complete
in all respect.

4.3.10 The initial advances as above will be paid to BSNL by USOF. Subsequent payments
based on actuals and adjustment/refund of advances paid, will be done by concerned CCA
offices. The advances provided shall be adjusted/refunded during the last quarter of the
same financial year

4.4 Payment Towards Fiber Leasing charges

4.4.1 BSNL shall provide the dark fiber from its Underground Optical Fiber and /or Aerial
Optical Fiber as the case may be at the rate of Rs.18,000/- per fibre Km per Annum. Taxes
as applicable will be paid.

4.4.2 In case multiple fibers are leased in the same cable, the additional fibers shall be
considered for payment at the rate of Rs. 15,000 per fibre per Km per Annum.

4.4.3 BSNL shall provide discount @Rs. 10,000/- per OFC route Km (Route Km) in lieu of
O&M of the same being reimbursed by USOOF.

4.4.4 Initially, the payments towards Fibre leasing charges (inclusive of GST) shall be
made to BSNL for one quarter as advance by USOF. This advance equal to one quarter of
fibre lease charges shall be adjusted/ refunded in the last quarter ofthe same financial year
in respect of fiber lease charges. Subsequently, advance for first quarter for the new financial
year shall be made to BSNL and adjusted/refunded in the last quarter of financial year on the
same lines as above.

4.4.5 The billing of fibre lease charges will be done by BSNL at the beginning of each
quarter in advance and will be submitted to Olo respective CCA

4.4.6 The payment towards fiber leasing charges shall be made on quarterly basis on
receipt of advance bills within 60 days of submission of requisite invoices and documents,
subject to submission of invoice complete in all respect.

4.4.7 No AE & EC shall be payable to BSNL for this head of expense.

4.4.8 Invoices submitted by BSNL with due cetification need to be given approval in 60
days, subject to submission of invoice complete in all respect.

Page 14 of 21

(AsKAPUR)
MUKESH MANDAL
GM(Bharat Net-l)
Dy. A g n s t ota (T1UBDF BSNL Corporate Office
New Delhi
4.5 Payments towards Space and Infrastructure

4.5.1 The charges for space and infrastructure at every BharatNet OLT will be as per the
classification of cities towns vide Govt. of India Department of Expenditure O.M. No
2(13)/2008-E.ll (B) dated 29.08.2008 and modified vide Govt. of India Department of
Expenditure O.M. No. 2/5/2017-E.II(B) dated 07.07.2017

4.5.2 Initially, the payments towards Space & Infrastructure charges (inclusive of GST)
shall be made to BSNL for one quarter as advance by USOF. This advance equal to one
quarter of Space & Infrastructure charges shall be adjusted/ refunded in the last quarter of
the same financial year in respect of Space& Infrastructure charges. Subsequently, advance
for first quarter for the new financial year shall be made to BSNL and adjusted/refunded in the
last quarter of financial year on the same lines as above
4.5.3 The biling of Space & Infrastructure charges will be done by BSNL at the beginning
of each quarter in advance and will be submitted to Olo respective CCA

4.5.4 The payment towards Space & Infrastructure charges shall be made on quarterly
basis on receipt of advance bills within 60 days of submission of requisite invoices and
documents, subject to submission of invoice complete in all respect.

5.5 Any adjustment/credit due to service level prescribed under this Agreement for each
quarter will be reflected in the bills of next to subsequent quarter. For example, the credit due
to service level as per Agreement for the 1s quarter will be given in the bills of 3 quarter.

4.5.6 The adjustment/credit amount along with SLA details as per service level will be duly
certified/ approved by BharatNet BA head/ a GM level officer posted at circle office executing
this task.

457 No AE &EC shall be payable to BSNL for this head of expense.

4.5.8 Charges towards Building Space

S.N. Classification of BSNLrate of Discount Round off Charges

cities/ towns Charges as on w.e.f01.07.2022 (Rs.
01.07.2022* Per annum
per bay)
2,12,681 20% 1,70,145
1,65,419 20% 1,32,335
91,901 20% 73,521

The rates are based on BSNL tariff circular issued for every financial year and will be
enhanced by 10% in every financial year. GST as applicable will be extra.

MUKESH MANDAL
Page 15 of 21 GM (Bharat Net-lil)
BSNL Corporate Office
(As KAPOOR New Delhi

ivtt. Ilenem
4.5.9 Miscellaneous Infrastructure Charges

s.N. Classification BSNL rate of Discount Round off Charges

of cities /towns* Charges as on w.e.f 01.07.2022 (Rs.
01.07.2022* Per annum per bay)
10,21,107 20% 8,16,886
2 Y 9,18,996 20% 7,35,197
3 Z 6,89,245 20% 5,51,396

The rates are based on BSNL tariff circularissued for every financial year and will be
enhanced by 10% in every financial year. GST as applicable will be extra.

BSNL shall maintain the OLT infrastructure for at least 99% of time, on monthly basis. For
below 99% uptime, the payment shall be made on pro-rata basis in infra service charges (i.e.
Monthly Charges multiplied by Percentage of Monthly Uptime).
No payment shall be paid for OLT infrastructure service charges, where uptime of an OLT is
below 70% for that month.
Invoices submitted by BSNL are to be finalized in 60 days from the date of submission,
subject to submission of bills complete in all respect.

4.6 BSNL will maintain a separate bank account for this activity regarding third partyY
payments. The amount received in advance will be kept in the separate bank account and
will be utilized for the o&M of the BharatNet phase-I network. The details of the bank
account will be shared by BSNL to USOF. All the concerned CCAs will make the payment
from USOF to this separate account of BSNL.

4.7 BSNL shall submit the circle-wise claim for each quarter along with supporting
documents within 30 days of the end of the quarter to the respective CCAs. Subsequent to
the submission of claim by BSNL, the respective CCA offices shall settle claims of BSNL on
quarterly basis, based on claim statement and certified ( by Bharatnet circle head)
supporting documents for SLA, penalties and incentives, within 60 days from the date of
receipt of claim from BSNL

4.8 Annual Audit

The aforesaid requisition of fund by BSNL for each financial year shall be required to be
audited by the auditors of BSNL appointed under Section 225/Section 619 of the Companies
Act, 1956. The report of the Auditors should be in the prescribed form given in Annexure-ll
to be filed with the Administrator USOF within 7 (seven) calendar days of the date of signing
the audit report but not later than 30th September of the following year.

4.9 No interest shall be payable for any short/late payment made to BSNL by the
Administrator USOF.

4.10 Administrator, UsOF reserves the right to prescribe procedures, formats and
certificates with respect to physical and financial progress of the project, financial reports for
reconciliation and verification. Depending on the stage of completion of the project and
requirements, the same may be prescribed which has to be furnished by BSNL.
Page 16 of 21

s I KAPOOR)
MUGEA MANDAL
GM (Bharat Net-I)
BSNL Corporate Ofice
New Delhi
dia
4.11 In order to ensure proper utilization of funds released and verification thereof, the
Administrator can modify, alter, or substitute and amend, if deemed necessary, whatever is
stated herein with mutual consent.

4.12 Bank Guarantees

Perfomance Bank Guarantee (PBG) is not required from BSNL so long as BSNL continues
to be wholly owned by the Government of India.

4.13 Maintenance and Supply of Records

4.13.1 The Administrator shall have the right to call for and BSNL shall be obliged to
maintain, supply and provide for examination the relevant NOC (Network Operation Centre)
data, books of accounts, measurement books, log books and any record(s) relating to this
project.

4.13.2 BSNL shall invariably preserve all accounting records for three (3) years and other
records (electronic as well as hard copy) for a period of one year from the date of publishing
of duly audited and approved accounts of the company. Any dereliction thereof shall be
treated as a material breach independent of any other breach, sufficient to give cause for
cancellation of the Agreement.

4.13.3 The relevant records of BSNL shall be subject to such scrutiny as may be prescribed
by the Administrator so as to facilitate independent verification of the amount due to BSNL as
funding from USOF.

4.14 Monitoring Mechanism

The progress of the O&M work shall be monitored through the Centralised Network
Operating Centre (NOC) and the access to the same shall also be provided to USOFICCA.
The reports shall be made available as required in para 3.8.1 or as required by DoT/USOF.
BSNL shall provide necessary data/ progress reports / funds utilization reports or any other
reports whenever required by DoT/USOF.

4.15 Right to Inspect

USOF/CCA shall have the access to all physical and financial records and systems
pertaining to the wok at all times. All signatories to this Agreement shall facilitate the
inspection of the project assets by and verification of records/systems by USOF/CCA to
ensure proper utilization of the funds disbursed.

MUKESH MANDAL
GM (Bharat Net-il)
BSNL Corporate Office
New Delhi
.StU KAPOOR)

y . Adnunslrati" (-il) USOF,

Deptt.o ea
Page 17 of 21

******* *****

****
 SECTION-V
DEFINITIONS
5 Interpretation of Terms/ Definitions

Unless the context otherwise requires, the different terms and expressions used shall have

the meaning assigned to them in the following paragraphs:

ADMINISTRATOR means the Administrator, Universal Service Obligation Fund in

5.1
the Department of Telecommunications under Ministry of Communications.
5.2 AGREEMENT shall mean the Agreement signed by BSNL with the Administrator,
BharatNet Phase-l
related to Operation and Maintenance, First Line Maintenance of the
Network for provision of Broadband connectivity to the Gram Panchayats to be executed by

BSNL
EFFECTIVE DATE is the date on which this Agreement comes into effect.
5.3

SERVICE AREA means the territorial jurisdiction as specified under the Basic
5.4
Service Licence except the areas that may be notified to be excluded from time to time.

TRAI means Telecom Regulatory Authority of India constituted under the TRAI Act,
5.5
1997 as amended from time to time.

USO means Universal Service Obligation as enunciated in Indian Telegraph Act and
5 6
the Rules framed there under.

5.7 USO FUND means the fund established under Indian Telegraph (Amendment) Act,
2003, Indian Telegraph (Amendment) Act, 2006 and Rules framed there under.

MUKESH MANDAL
GM (Bharat Net-l)
BSNL Corporate Office
New Delhi

(ASHI KAPOOR)
"y. Pdnastratr (T-1)
U8pF.
Depto

Page 18 of 21
 Annexure
A. Service Level Agreement hereinafter referred as SLA for 0&M of BharatNet
Phase-l:
The following SLA parameters are to be maintained by BSNL through the vendors

entrusted with the work of maintaining the network

SLA
Parameters
Sr. Permissible Range| Remarks
Parameter
No
Based on availability from
298% for hilly
NOC. Exclusions only due
OLT wise all GPs- areas.
2 99% for to Force Majeure
UP Time
plain areas Clauses, OLT power down
and Electric connection
unavailability.
One cut if the OFC|
RKM in the block is
s50;
No. of OFC cut/Block Two cuts if the OFC|
Z /month RKM in the block is
>50 and s100;
N cuts if the OFC
RKM is 50(N-1)
and s50N

Note:
1.
In house Trouble Ticket Module developed by BBNL will be used for capturing
the fault status which will in turn be used for SLA calculation through the SLA
module.

2. SLAs to be calculated OLT wise and penalties to be imposed on monthly

basis.
3. BSNL shall get the SLAs achieve through the vendors, else the corresponding
penalties will be imposed on them .

Wherever Electricity Connection is not available in the GP - Exclusion of down

A.
time after discharge of battery set shall be allowed in SLA...

The shutdown taken for maintenance of fibre by FMA shall be excluded from
SLA.

6. If electric supply is not available and the battery is unable to take load such
down period of OLT/ONT will be excluded from SLA.

7. No exclusion except above or force majeure cases.

MUKESH MANDAL
Page 19 of 21
GM (Bharat Net-l)
S KAPOOR) BSNL Corporate Office
New Delhi
Dy. Adnwslatu (T-11) UBOF. *****
B. Penalties for 0&M of BharatNet Phase-l:
the
ne rolloWing penalties are proposed to be imposed on the vendors maintaining
network.

Plain
Hilly
GPs Penalty
SI Item GPs availability/Up availability/Up
No Time
Penalty
Time
No Penalty
No 299%
298%
Penalty
>96 to <98% 97 to <99%
>=94 to <96% 6% >=95to <97% 6%
20% >=90 to <95% | 20%
>=90 to <94%
1
Penalty against
% availability 45% >=80 to <90% 45%
>=80 to <90%

>=70 to <80% 75% >=70to <80% 75%

100% Below 70%

Below 70% 100%

On Block
N cuts if the OFC
NIL wise
RKM is >50(N-1) (based on
and =50N total GPss
Block wise Fibre
cuts/faults per in the
2
Month Above N cuts/fault| Block)
Rs. 5000/- per cut/fault
Month or part monthly
thereof payment

%to 97% penalty will

the penalty is zero and from 99
I n plain area at 99% availability it will be
For example for availability of 97.56%,
be proportionate to SLA availability, will be 99-97.6=1.4%.
decimal i.e.97.6 and penalty
rounded off to single digit after to 96%
at 98% availability the penalty is zero and from 98%
Similarly for hilly area For example for availability of 97.54%
will be proportionate to SLA availability.
Penalty after decimal i.e. 97.5 and penalty
will be 98-97.5
it will be rounded off to single digit
.5%
OLT) month
OLT wise (i.e. all the GPs connected to one
Note: SLA will be calculated
wise.

C. Incentive:

shall be made quarterly on performance as under:

Payment against Incentive
awarded
to the OFC in a Block, the Bidder shall be
an
In case there is no fault/damage
incentive package to be paid at the
end of the quarter based on the following:
for each month if there is no fibre cut in a month.
a) 0.5% of total 0&M charges
is no fibre cut for consecutive three
b) Additional 0.5% of total charges in case there
months.
Page 20 of 21
MUKESH MANDAL
GM (Bharat Net-ll)-
BSNL Corporate Office
1AFOOR) New Delhi
 Annexure-

Statement(s) of Requisition &Utilization

Format for Annual Auditor's Report on
of Funds:E
To

The Board of Directors

* * * * * * * * * * * * ' "

* * *
* * * *

* * * '

'*
Funds from US0
***

Statement(s) of Requisition of We
the attached
We have examined for the period ending
Sanchar Nigam Limited Central
Government
Fund of M/s Bharat furnished to the
aforesaid statement/s) is /are to be Limited by the
understand that the
M/s Bharat Sanchar Nigam
payable to
of the fund for Operation and
for assessment
No. ....
for release of funds
for provision of
. .

terms ofthe Agreement Network

Government, in BharatNet Phase-I
of the
Line Maintenance
Maintenance, First
to the Gram Panchayats.
Broadband connectivity

We report that: knowledge

which to the best of
our
infommation and explanations,
obtained all the
We have of our audit.
necessary for the purposes
and belief were to the explanations
our knowledge
and belief and according
and to the best of the conditions contained
In our opinion in accordance with
Statements have been prepared a true and fair view of
the this behalf and gives
given to us, clarification thereon in aforesaid
and basis of the
in the said Agreement computed on the
requisitioned and utilised for the period
the funds
conditions.

SIGNATURE WITH
COMPANY'S SEAL)
(NAME AND

MUKESH MANDAL
Page 21 of 21 GM (Bharat Net-ll)
BSNL Corporate Office

AF R).
New Delhi
uistr-al (T-1) USO.F.