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Chapter-7.B
Chapter-7.B
MEMORANDUM OF UNDERSTANDING BETWEEN
DEPARTMENT OF TELECOMMUNICATIONS, GOVERNMENT
OF INDIA
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Chapter-7.B
MEMORANDUM OF UNDERSTANDING BETWEEN DEPARTMENT OF
TELECOMMUNICATIONS, GOVERNMENT OF INDIA AND BAHRAT
SANCHAR NIGAM LIMITED FOR THE YEAR 2009-10.
MEMORANDUM OF UNDERSTANDING
PART-I
VISION / MISSION AND OBJECTIVES
VISION:
a) Be the leading telecom service provider in India with global presence.
b) Create a customer focused organization with excellence in sales, marketing and
customer care.
c) Leverage technology to provide affordable and innovative products/services
across customer segments.
d) Provide a conducive work environment with strong focus on performance.
e) Establish efficient business processes enabled by IT.
MISSION:
a)
Be the leading telecom service provider in India with global presence.
Achieving 20-25% YOY growth in turnover next 5 years through telecom
& information communication opportunities.
Generating value for all stakeholders-business associates, vendors,
shareholders & employees.
Maximizing return on existing assets with sustained focus on profitability.
Becoming the most trusted, preferred and admired telecom brand.
To explore International markets for Global presence.
b)
Creating a customer focused organization with excellence in sales, marketing
and customer care.
Developing a marketing and sales culture that is responsive to customer
needs.
Excellence in customer service-“friendly, reliable, time bound, convenient
and courteous service.”
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c)
Chapter-7.B
Leveraging technology to provide affordable and innovative products /
service across customer segments
Offering differentiated products/services tailored to different service
segments.
Providing reliable telecom services that are value for money.
d)
Providing a conducive work environment with strong focus on performance
Attracting talent and keeping them motivated.
Enhancing employees skills and utilizing them effectively.
Encouraging and rewarding individual and team/group performance.
e)
Establishing efficient business processes enabled by IT
Changing policies and processes to enable transparent, quick and efficient
decision making.
Building effective IT systems and tools.
OBJECTIVES:
To be the leading Telecom Services provider.
To provide quality and reliable fixed telecom service to our customer and thereby
increase customers confidence.
To provide customer friendly mobile telephone service of high quality and play a
leading role as GSM operator in its area of operation.
To provide Point of Interconnection to other service providers as per their
requirement promptly.
Contribute towards:
i)
National Plan Target of 500 million customers base for India by 2010.
ii)
Broadband customers base of 20 million in India by 2010 as per
Broadband Policy 2004.
iii)
Providing Telephone connection in villages as per Government policy.
PART – II
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Chapter-7.B
EXERCISE OF ENHANCED AUTONOMY AND DELEGATION OF POWERS.
(A) BSNL exercises various powers delegated under Mini-Ratna Category-I
Enterprise as and when need arises.
(B) Specific areas in which further Autonomy & Financial powers may be delegated
to BSNL board to stimulate growth:(i)
Policy approval to BSNL board for limited roll out of new technology
equipments in relaxation of open tender process to get the first mover
advantage.
(ii)
BSNL Board should have flexibility to relax procedures and requirements
in its procurement process during bidding, ordering and at execution stage
looking to the business needs in highly competitive scenario in Telecom
sector.
(iii)
BSNL Board should be empowered to extend the contract with existing
vendors to procure the product and solutions from them with annual price
negotiation looking into the business needs for faster roll out of services in
a highly competitive market scenario.
(iv)
Power to enter into agreement for J.V. partnership with national and
international firms.
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Chapter-7.B
PART – IV
COMMITMENT / ASSISTANCE FROM THE DEPARTMENT OF
TELECOMMUNICATIONS, GOVERNMENT OF INDIA
DOT, Government of India will endeavour to assist in the following matters:
1. Reduction of 14.5% interest charged on notional loan in the capital structure of
BSNL at the time of its creation to prevailing rate of interest applicable on
Government borrowings during its repayment period in consultation with
Ministry of Finance. In addition the penal interest charged on this loan should be
waived in view of its repayment to Government of India.
2. Adjusted Gross Revenue (AGR) from urban wire line connections need be
exempted from the payment of license fee.
3. Reduced contribution towards USOF should be extended from 01/04/2008 to the
revenue earned from basic as well as cellular services like that extended to UASL
operators, since BSNL has completed the requisite coverage of 95% block HQs
by either basic or cellular services.
4.
Losses incurred on the rural wire line, excluding that received through USO
support DELs, due to difference in the rentals prescribed by TRAI and that
actually being recovered due to reasons of affordability needs to be compensated
from USOF. For this provisions already exists in the Indian Telegraph Rules and
the same has been recognized by TRAI also. Support of Rs.854 crores per
annum.
5. Grant of benefit of deduction of non telecom activities viz., the interest income,
revenue arising out of provisions like bad debts and taxes, revenue arising from
reversal of Vendors credits, payments received on behalf of third party, revenue
from sale of equipment including sale of VSAT terminals, CMTS handsets, bad
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Chapter-7.B
debts, waivers, discounts, service tax and interconnection
charges, from
Aggregate Gross Revenue (AGR).
6. To assist in grant of Navratna status to BSNL in view of its financial performance
& phenomenal growth during last 5 years.
PART - V
ACTION PLAN FOR IMPLEMENTATION AND MONITORING OF
THE MOU
Performance of BSNL will be monitored quarterly and evaluated at the end of the
year by DOT against the targets given as per MOU.
Sd/-
Sd/-
( Kuldeep Goyal )
( Siddhartha Behura )
CHAIRMAN & MANAGING DIRECTOR
SECRETASRY, DOT &
BSNL
CHAIRMAN TELECOM COMMISSION
Controller of Communication Accounts
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Chapter-7.B
Bharat Sanchar Nigam Limited (BSNL) has been formed w.e.f. 1.10.2000 by
converting the erstwhile Department of Telecom. Services (DTS) and Department of
Telecom. Operations (DTO). A need was therefore felt for formation of a separate cell in
DOT to deal with the residual items of work relating to DOT. Accordingly, a DOT Cell
Unit has been formed at each Telecom Circle Accounting unit.
These units have been subsequently, renamed as offices of CCA (Controller of
Communication Accounts) from 27.06.2002 as per DOT letter NO.3-4/31/2000-SEA
dated 27.06.2002. The constitution in general of a CCA office will be follows:
Controller of Communication
Accounts
-
in the grade of SAG from Accounts& Finance
Service.
Joint CCA
service.
-
in the grade of JAG from Accounts & Finance
Deputy CCAs
service.
-
in the grade of STS from Accounts & finance
Communication Accounts
service.
Officer
-
in the grade Group B from Accounts & Finance
Junior Communication
Accounts Officer
-
in the grade of Group B from Accounts & Finance
services.
The office establishment comprises of Senior Accountants, Junior Accountants and
Lower Division Clerks etc.
Functions of DOT Cells (CCA)
1.
Pension and Retirement Benefits: The pension cases and other retirement cases
will be processed by the SSAs of the field units in the BSNL and sent directly to DOT
cells. DOT cell unit will issue PPOs and the authorities for DCRG, commutation
payment, family pension authority, authority for payment of accumulation in
CGEGIS-1980, cgegis-1977, GPF final payment authority to those on deemed
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Chapter-7.B
deputation to BSNL and also for those who opt to get absorbed in BSNL. The audit of
the Pension vouchers will also be done by the DOT Cell unit.
2.
Pension contribution: Under rule 37 A of the CCS (pension) rules the govt. will
make arrangements for the collection of pension contribution from the BSNL for the
period of service the employees render in the BSNL. This will apply not only to these
officers who are working on deemed deputation basis in the corporation but also to
those employees who opt to get absorbed in the corporation. DOT Cell will undertake
collection and employee-wise scrutiny and monitoring of amounts received on this
account from the corporation.
3.
GPF accounting: DOT cell unit will maintain employee-wise GPF broad-sheet in
respect of employees working in BSNL. Amounts collected and amounts paid out of
the GPF accounts in respect of the employees working in BSNL, will be settled and
taken to the govt. head of account through DOT Cell.
4.
Recovery and accounting for HBA and other long term advances like MCA,
Scooter advance etc. taken by the employees while working in the government:
Recovery particulars in respect of such loans and advances already taken by the
employees prior to corporatization will have to be intimated by the BSNL to the DOT
cell and amounts adjusted through the DOT Cell account.
5.
All claims of the govt. against the BSNL and those of the BSNL will be settled in
cash. The BSNL circle HQ will submit their claims giving full details to the DOT cell
unit. All claims will then be scrutinized and settled by the DOT cell unit under the
government rules.
6.
LPCs: On transfer of an employee from one BSNL unit to another, the DOT cell
will be required to workout on the basis of the LPCs, outstanding balances due
from/to the employee to/from the govt. and advise the respective BSNL unit
appropriately. In effect the LPCs will be routed through DOT cell in the vent of
transfer from one BSNL unit to another BSNL unit, from DOT to BSNL, BSNL to
DOT etc. to verify the correctness of entries therein.
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7.
Chapter-7.B
Settlement of outstanding balances under remittance and suspense head before
transfer of firm figures to the balance sheet of the corporation: This will have to be
done by DOT cells in collaboration with the BSNL. There are large adverse balances
in the transitory heads as on the date of formation of BSNL. This will have to be
settled through active perusal and monitoring by the accounts division of the DOT
HQ and the DOT Cell with the BSNL units. Similarly, accounting under other debt,
deposit and remittance heads will also have to be handled by the DOT Cell in
collaboration with the BSNL. In respect of debt and deposit heads, some of the
transactions between BSNL, MTNL and DOT will continue for some time. As far as
telephone revenue is concerned a huge amount of nearly Rs.3000 crores was
outstanding as on date of creation of the BSNL. For clearance of this amount and
taking to the final revenue head of BSNL, the DOT cells will render assistance in
perusal and collection.
8.
Collection of license fee in the form of revenue sharing from various operators on
behalf of the government: This work will be done by the DOT cells. Detailed
instructions and modalities relating to this work will be issued by DDG(LF) DOT
separately.
9.
Telecom service Tax collection: To ensure collection of government dues and
crediting of the same in government accounts through appropriate heads, the DOT
cell will also monitor/oversee the collection of service tax from the telecom service
providers.
10.
Wireless Monitoring Organization: The budget, finance and accounting functions
of the
11.
WMO will be handled in the DOT cells.
Spectrum charges: Realization and accounting of revenue in the form of license
fee and royalty for use of spectrum will also be handled by DOT Cell. Detailed
instructions/modalities relating to this will be issued by DDG(WPF) DOT separately.
12.
The DOT cells will take over unused cheque book from the circle headquarters
and keep them in safe custody.
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13.
Chapter-7.B
Budgeting, accounting and DDO functions of DOT Cell: The DOT cell will also
submit a monthly circle abstract to DOT headquarters in standard TACT package,
within the 7th/12th of each month. Detailed instructions on budgeting, accounting and
DDO functions for the DOT cell will be issued separately by DDG(Accounts) DOT.
Any other item assigned later on.
(DOT Lr.no.34-31/2000-SEA dt. 30-1-2001)
It has been decided that no leave salary contribution is payable in respect of such
of those Group C and D employees as have been absorbed in the BSNL, from the date of
their absorption.
(BSNL HQ No.500-57/2000-TA-I/BSNL, dt. 24-5-2002)
Similarly no leave salary contribution is payable in respect of such of those Group
B employees as have been absorbed in the BSNL, from 1-10-2000.
(BSNL HQ No.500-Misc/2004/CA II/BSNL, dt. 3-2-2004)
The Pension and Leave salary contribution have to be made to respective
Controller of Communication Accounts within 15th of the following month with all
supporting schedules. It is reiterated that all GPF subscriptions and recoveries and
CGEGIS recoveries should be passed on to the respective Controller of Communication
Accounts invariably by 6th of the following month with all supporting schedules of
recoveries and withdrawals. Any interest liability arising out of delayed payment would
be the responsibility of the Circle.
(D.O.No.500-57/2002-CA-I/BSNL/KW/1 dt. 24-10-2002 from Director (F) to all CGMs)
Sub:-Payment of leave salary contribution to DOT Cell in r/o Gr.C & D
employees absorbed in BSNL –Clarification-reg
Ref:-1) BSNL No.500/57/2001-TA-I/BSNL dt. 31-5-2001
2) BSNL No.500/57/2001-TA-I/BSNL dt. 24-5-2002
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Chapter-7.B
A reference is invited to the communications under reference wherein instructions
regarding payment of leave salary contribution to DOT in respect of DOT employees on
deemed deputation with BSNL and discontinuation of leave salary contribution in r/o Gr.
C & D employees absorbed in BSNL were issued.
Now some BSNL Telecom Circles have raised certain doubts on the following
points. The clarifications in this regard are given below.
Doubts
What will be accounting
adjustment in case DOT Cell
had paid any amount of leave
encashment to Gr.C & D
employees absorbed in BSNL
Clarifications
Since it has already been instructed under para 5 of letter
under reference at 2 above that the amount of leave salary
contribution already paid by BSNL in respect of Gr. C &
D employees absorbed in BSNL is to be recovered from
DOT Cell, It is clarified that the amount of leave
encashment if any paid by the DOT Cell to Gr. C & D
staff absorbed in BSNL it to be refunded to DOT,
provided a claim supported by proper documents, is
preferred by the latter to BSNL. Before effecting refund
the BSNL circle will ensure that the leave salary
contribution made by it to DOT Cell in r/o the concerned
employee has been paid back by the latter to BSNL or
adjusted against the claims payable to DOT. While
paying such amount necessary accounting will be done
by BSNL accounting units as per the existing order.
Whether pension contribution Pension contribution is to be paid by BSNL to DOT Cell
is to be paid by BSNL to in respect of such Gr. C & D staff.
DOT Cell in respect of Gr. C
& D employees absorbed in
BSNL, but working in DOT
Cell
Whether
leave
salary Leave salary contribution need not be recovered al this
contribution
is
to
be stage from DOT Cell in respect of such Gr. C & D staff
recovered from DOT Cell in
respect of Gr. C & D staff
absorbed in BSNL, but
working in DOT Cell
(BSNL HQ No.500-57/2001-TA-I/BSNL/KW
©BSNL, India
dt. 7-11-2002)
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Chapter-7.B
Timely remittance of GPF recoveries etc. to CCAs
A lot of instances have come to the notice of the management of BSNL that there
is an abnormal delay in remitting the GPF recoveries by many Telecom circles for which
a considerable amount of interest is being charged by CCAs and BSNL circles are paying
the said amount of interest and thereby incurring avoidable/unwanted expenditure. The
management of BSNL has viewed this matter seriously.
It is reiterated that circles must adhere to the date fixed for remitting the GPF
recoveries to CCAs i.e. 6th of the following month. In this regard the Circles must follow
the following schedule of activities:
a)
Withdrawal and advances from GPF should not be allowed in the last three days
of the month except in emergency cases.
b)
The PAUs must prepare monthly debit and credit schedules of GPF and send the
same well in advance so that the same are positively received by the Circle Office
by 3rd of the month following the month of recovery and payment.
c)
On the basis of debit and credit schedules received from the PAUs, the Circle
office of Telecom Circles will remit the GPF amount to CCAs (DOT Cell) by 6th
of the following month.
d)
After receipt of Trial Balance from the PAUs, the circle office of Telecom Circle
will reconcile the booked figure as reflected in TB with the figure shown in debit
and credit schedule of that month. On the basis of reconciliation if it is found that
some additional amount is payable to CCA, the same must be remitted to CCA
promptly. This process must be completed by 10th of the following month. If there
is any excess remittance, the same must be adjusted in the next month.
(BSNL HQ No.500-157/2004/CA-II/BSNL dt. 5-7-2004)
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Chapter-7.B
Points of Doubt
Clarification
Who will make the payment of:
In respect of item no.(i) to (iii) payments will be made
by the DOT Cell for the employees whether on
deemed deputation or absorbed in BSNL.
i.
ii.
iii.
iv.
v.
vi.
DCRG
Commuted value of
pension
Provisional pension
Leave encashment
Accumulation in the
CGEGIS‟80
&
CGEIS‟77
GPF final payment on
superanuation/retirement
For item no.(iv) to (vi) payment will be made by the
DOT Cell to employees who are on deemed
deputation but BSNL will make payments to the
employees who are absorbed in BSNL.
Who will make the payment to SSAs/Circles of BSNL will make the payment during
the employees in case of :
a month and claim will be lodged with DOT cells
through circle HQrs. At the end of the month till the
i.
Advances from GPF
employees are on deemed deputation. After
ii. Withdrawal from GPF
absorption, separate instruction will be issued.
Who will pay the following Payment will be made to all the employees on deemed
advances to the employees (on deputation by the SSAs or circles of BSNL as was
deemed deputation to BSNL)
being previously done in DOT/DTS. Claims will be
lodged by BSNL at the end of each month with DOT
i.
House Building advance
cells at circle Hqrs., who will reimburse the amount to
ii. Motor Car Advance
BSNL from this year‟s allocation under the Budget of
iii. Scooter Advance etc.
Government till 31.3.2001. However, officials, who
become corporate employees before 1.4.2001. shall
not be eligible for payment of advances from the
allocations of fund from DOT. In such a case, CGMs
may approach BSNL Hq. for allocations of fund.
From 1.4.2001 BSNL will pay the advances from its
own funds allocated for the purpose for all including
those on deemed deputation. Therefore, no claim will
be lodged on DOT Cell w.e.f. 1.4.2001.
(DOT Lr.No.7-1/2000-TA-I/17
©BSNL, India
dt. 18.10.2000)
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Chapter-7.B
Leave Encashment at the end of service for the Group ‘C’ & ‘D’ who stand absorbed
in the BSNL, payment in encashment of leave will be made by the BSNL, as earned leave
and half-pay leave at the credit of the absorbed Group „C‟ & „D‟ employees stands
transferred to the BSNL .
GPF Final payment at the end of service: For the present, Final payments of GPF
balances may continue to be made by the DOT cells to all employees of the Groups
„A‟,‟B‟,‟C‟,&‟D‟ of BSNL till the BSNL formalizes a scheme for the administration of
its employees‟ provident fund accounts.
(DOT Lr. No.7-1/2000/TA-1/17, dt. 31-7-2002)
Leave Encashment at the end of service for the Group B officers, who stand absorbed
in the BSNL, payment in encashment of leave will be made by the BSNL.
(BSNL HQ No.500-Misc/2004/CA II/BSNL
dt. 3-2-2004)
Levy of penalty for delayed payments to CCA:
Of late undue delay has been observed in transferring the recoveries to the CCA
unit. It has therefore been decided by the Govt. that the corporation will be liable to pay
penal interest on delayed pension contribution.
The following are the details of rates of penal interest decided for levy provisionally by
the DOT pending final approval by Ministry of Finance:
i.
Delay in remittance of LSC/PC:
ii.
Delay in remittance of GPF/L&A:
As per SR 307(1)
2.5% above the applicable rate of interest. Interest will be charged from 1st of the
month following the recovery, if payment is not made by the specified date.
iii.
In case of CGEIS/CGEIS :
2.5% above the ruling rate of interest on CGEIS per annum (Compounded
quarterly). Interest will be charged from 1st of the month following the recovery,
if payment is not made by the specified date.
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Chapter-7.B
Claims if any, by BSNL on the CCAs /DOT may be preferred separately. No
netting is allowed to be made from the recoveries or any other amount due and
payable to CCAs/DOT.
(DOT lr.no.7-1/2000/TA-I/17 dt. 9-5-2005)
Actions suggested by the CCA for timely payment of pension to BSNL staff :
So as to obviate the possible delays in settlement and to ensure that the pension and other
retirement benefits are settled in time, the following schedule of action has been
prescribed.
(A) Supply of six monthly list of the officials due to retire with in the next 24 to 30
months:
This should be supplied to the CCA office not later than 31 st of January or 31 st
of July as the case may be. In the case of officials retiring for reasons other than
superannuation, the office of CCA is to be informed as soon as the employee seeks
retirement.
Preparation of Pension Papers:
Immediate action should be taken to verify the qualifying service of all employees
retiring within 2 years.
Ensure 24 months before retirements that the Service Book contains the
certificates of verification for the entire period of service. Wanting certificates if
any should be called for and recorded in the SB.
If service verification relating to a different unit is not forth coming, the official
concerned may be asked to file a written statement certifying the service rendered
producing supporting evidence.
All Govt. dues to be ascertained in advance and kept ready.
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Chapter-7.B
In case of death/voluntary retirement, the head of the office should start verifying
qualifying service, dues, pending disciplinary cases if any, and try to obtain the
pension papers to avoid delay in settlement of the case.
The TA branch of the SSA should complete calculation of average emoluments
10 months before retirement of retiring officials.
Pension papers in triplicate to be forwarded to the individual with in 8 months of
the retirement.
The pension case should be forwarded to the office of CCA by the TA wing of the
SSA not later than 6 months before the date of retirement, duly ensuring that
i.
the Joint photo is duly attested and pasted in the application.
ii.
All columns in the data sheet are completed
iii.
The calculations are correct.
iv.
The bank account no. is clearly noted in the application if the govt. servant
wishes to draw pension through the bank.
v.
The place where the retiring govt.. Servant wishes to stay after retirement
and whether the place covered under the CGHS or otherwise.
Documents that should accompany the pension claims sent to the office of CCA:
1.
Data sheet
Two copies.
2.
Pension application
Two Copies
3.
Photograph/Joint photograph
Two copies
4.
Specimen signature slip-claimant
Two copies
5.
Specimen signature slip-spouse
Two copies
6.
Details of family members
One Copy
7.
Nomination for DCRG/GPF/CGEIS
One copy
8.
Statement showing non-qualifying service
One copy
9.
Report of vfn. Of 25 yrs. Service
One copy
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Chapter-7.B
10.
Commutation application
One copy
11.
Vig/disciplinary clearance
One copy
12.
Identification marks of the individual
One copy
13.
Identification marks of the spouse.
One copy
14.
Detailed calculation sheet
One copy
15.
No dues certificate
One copy
16.
Succession certificate.
One copy
(in case of no nomination)
17.
©BSNL, India
LPC (Provisional/Final)
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One copy
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Chapter-7.B
Self study Questions:-
1. What is the Mission, Vision and Objectives as per the MOU signed between DOT
and BSNL for the year 2009-10?
2. List out the functions of DOT Cells.
3. What are all the checks to be exercised for timely remittance of GPF recoveries
etc. to CCAs
4. What are the points to be seen for the preparation of pension papers?
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