The Hindu Business Line : USO fund: Finance Ministry faulted

Contentious issues
As against a demand of Rs 3,500 crore made by DoT for the current year, the Finance Ministry has released only Rs 1,500 crore.
Of the Rs 10,787 crore collected so far, as USO since 2002, only Rs 3,581 crore has been released.

New Delhi , Aug. 1

The Department of Telecom has said the Finance Ministry was not honouring Parliament decision with regard to the universal service obligation (USO) fund allocation by not disbursing more than 50 per cent of the amount collected from the operators.

As against a demand of Rs 3,500 crore made by DoT for the current year, the Finance Ministry has released only Rs 1,500 crore.

In a statement given to the Parliamentary Standing Committee on IT, the DoT said, "Every year we write to them that we are entitled to have this kind of money and we make a provision. The fact of the matter is that what was the will of Parliament is not being honoured and what was collected as USO levy has not been so far given to the Department for the purpose of the USO Fund."

Of the Rs 10,787 crore collected so far, as USO since 2002, only Rs 3,581 crore has been released.

The DoT has, meanwhile, gone ahead and kick-started the process for funding cellular services through the USO Fund by inviting operators to participate in setting up infrastructure in Jharkhand. DoT has sent a letter to all telecom operators and infrastructure providers seeking inputs in finalising the draft tender to invite bids. The model developed for Jharkhand will be replicated in other parts of the country. Approximately 10,000 towers are proposed to be set up in rural areas, which are currently not covered by mobile signals. A draft tender document for inviting comments for this project is likely to be finalised shortly.

"To start with, location of the towers proposed to be installed in Jharkhand has been worked out on a sample basis," said a DoT letter.

The Parliamentary Standing Committee on IT, while giving its nod to the proposal to support cellular infrastructure through USO, has asked the Ministry of Finance to release necessary funds for the purpose. "The very purpose of creating the USO Fund is defeated when the amount needed for providing basic telephone services is not provided.

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USO fund: Finance Ministry faulted