cqmJ WCfiR GOVERNMENT OF INDIA ~ 3fu: ~ Chi

R K SudhanshuJoint SecretaryEmail: [email protected] / Fax No. 24363099

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31o"fro"11;1"fro: 3(113)12008-EG-II (Vol-II)D.O.NO .

Dear Sir / Madam,

Subject:

cqmJ WCfiRGOVERNMENT OF INDIA

~ 3fu: ~ 11~:i'ifJ1Chi J:j 5i 1CVi <qMINISTRY OF COMMUNICATIONS AND IT

$8~Tf'1chl 3fR ~ lf181f1ICfil fcrmTTDEPARTMENT OF ELECTRONICS AND

INFORMATION TECHNOLOGY

$i?I~Tf'1Cf8 F'1~d1/ELECTRONICS NIKETAN6 ;m.~.dT. CflTU1i?1Cf8/ 6,C.G.O. COMPLEX

~ ~ /New Delhi-110003Website: www.deity.gov.in

. 22-11-2016~/Dated .

Closure of the CSC -VSAT project "Providing Broadband connectivity to 2500CSCs in North East & difficult areas through NICSI" under CSC Scheme-regarding

Kindly refer to the last Project Review and Steering Group (PRSG) meeting of this Ministryheld on 9th August, 2016 to review the CSC -VSAT project named "Providing Broadbandconnectivity to 2500 CSCs in North East & difficult areas through NICSI". It was recommended bythe PRSG vide para- 4 (iii) (c) of the Minutes of Meeting (copy enclosed) that the project durationwould be ending in March, 2017.

2. Further, I would also like to refer to the decision against the agenda no. 8 in the 11thEmpowered Committee Meeting on CSC Scheme held on 12.11.2013 under the chairmanship ofSecretary, MeitY (copy of the minutes is enclosed). According to this, as the entire CSC scheme wasextended till March, 2017, the CSC -VSAT project was also extended up to March, 2017 only.Hence, it is advisable that all activities involved in this project including settlement of pendingutilization certificates etc. are needed to be completed by March, 2017 for a formal closure of thesame. The template of CSC Scheme-NeGP-Project Completion Report Template is available at thefollowing link: http://meity.gov.inicontent/csc-scheme

3. In view of above, I would request you to kindly bestow your personal attention for expeditingcompletion of the desired project activities and enable this Ministry for closure of the project beforeMarch, 2017 by submitting the Project Closure Report.

With regards, r1 ) Yo~rs sincerely,

~/l1_G

Secretary/Principal Secretary (IT) of States(Arunachal Pradesh, Assam, Tripura, Himachal Pradesh, Meghalaya, Manipur, Mizoram,Nagaland, Uttarakhand, Jammu & Kashmir, Jharkhand, Rajasthan)

~•ELECTRONICS INDIA8illion Needs MI on Ch,ps

Page 1of2

1. Secretary (IT), Department of Information Technology,Govt. of Arunachal Pradesh, Civil Secretariat,Itanagar - 79111 1, Arunachal Pradesh

2. Principal Secretary (IT), Department of InformationTechnology, Govt. ofTripura, IT! Road, Indra Nagar,Agartala- 799 006, Tripura

3. Secretary, Department of S&T and Information Technology,Govt. of Manipur, North Block, Manipur Secretariat,Imphal - 795001, Manipur

4. Commissioner & Secretary (IT), Department of InformationTechnology, Govt. ofMeghalaya, Ground Floor, NICBuilding, Secretariat Hall, Shillong, Meghalaya

5. Secretary (IT), Department of Information &Communication Technology, Govt. of Mizoram, OldSecretariat Building, Block "A", Top Floor, Aizawl- 796 001

6. Secretary (IT), Department of Information Technology,Govt. of Nagai and and, New Secretariat (Thizama Road),Kohima- 797 001, Nagaland

7. Secretary (IT), Department of Information Technology,Govt. ofUttarakhand, Uttarakhand Secretariat,Subhas Road, Dehradun - 248001, Uttarakhand

8. Secretary, Department of Information Technology,Govt. of Jammu & Kashmir, 15t Floor, Room-III,Secretariat, Srinagar, Jammu & Kashmir

9. Additional Chief Secretary, Department of InformationTechnology, Govt. of Himachal Pradesh, IT Bhavan, Mehli,Shimla-13

10. Secretary (IT), Department oflnformation Technology,Govt. of Jharkhand, Jharkhand Mantralaya,Project Building, Dhurwa, Ranchi- 834 004

11. Commissioner & Secretary, LT. & Communication Deptt.Govt. of Rajasthan, IT Building,Yojana Bhawan,Tilak Marg, C-Scheme, Jaipur-302005, Rajasthan

12. Commissioner & Secretary, Information TechnologyDepartment, Government of Assam, Assam Sachivalaya,Block C, 3rd Floor, Dispur, Guwahati -781006, Assam

Copy for kind information and necessary action:1. Director General, National Informatics Centre, New Delhi2. MD, National Informatics Centre Services Inc. (NICSI), New Delhi3. CEO, CSC e-Govemance Services India Ltd. (CSC -SPY), New Delhi

Cl Yours sincerely,

~J

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~fHCflHGovernment of India

~ 3W~ ~~'li)nIChl q''1I('l(;4Ministry of Communications & Information Technology

$H~fRc6\ am-~ gJE)ifilc@~Department of Electronics & Information Technology

$Ji~IHcm Hcf;(1'1,6, m \iiT :m CflIUlJicm,~ ~ -110003Electronics Niketan, 6, C G 0 Complex, New Delhi-ll0003

Website: www.deity.gov.in

~3(113}/2008-EG-II (Vol-II)No .

Minutes of Meeting

Subject: Minutes of the Project Review and Steering Group (PRSG) Meeting on"Providing Broadband connectivity to 2500 CSCs in North East & difficult areasthrough NICSI" held on 9th August, 2016 at 03:00 PM, under the Chairmanshipof JS & GC (eGov), Meit'r',

A PRSG Meeting was held under the Chairmanship of Joint Secretary & GroupCoordinator (eGov), MeitY on 9th August 2016 at 03:00 PM at Room# 4009, MeitY to review thestatus of the project being implemented by CSC Spy as implementing agency and NICSI as anagency for setting up VSAT Hub & providing connectivity (Satellite Bandwidth) to VSATs atCSCs.2. The copy of the Minutes of the Meeting is enclosed herewith for your kind informationand necessary action.

3. The minutes are issued with the approval of the Chairman, PRSG and Group Coordinator(eGov), MeitY.

Director

To,1. Joint Secretary, Ministry of Rural Development (MoRD), New Delhi2. Director General, National Informatics Centre, New Delhi3. MD, National Informatics Centre Services Ine. (NICSI), New Delhi4. CEO, CSC e-Governance Services India Ltd. (CSC SPV), New Delhi5. JS& FA, IFD, MeitY, New Delhi6. Secretary (IT), Department of Information Technology,

Govt. of Arunachal Pradesh, Civil Secretariat,Itanagar - 79111 1, Arunachal Pradesh

7. Principal Secretary (IT), Department of InformationTechnology, Govt. of Tripura, ITI Road, Indra Nagar,Agartala- 799006, Tripura

~ Digital India'-' PowerTo Empower

~•ELECTRONICS INDIABillion Need, Million Chips

8. Secretary, Department of S&T and Information Technology,Govt. of Manipur, North Block, Manipur Secretariat,Imphal- 795001, Manipur

9. Commissioner & Secretary (IT), Department of InformationTechnology, Govt. of Meghalaya, Ground Floor, NICBuilding, Secretariat Hall, Shillong, Meghalaya

10. Secretary (IT), Department of Information &Communication Technology, Govt. of Mizoram, OldSecretariat Building, Block "A", Top Floor, Aizawl- 796 001

11. Secretary (IT), Department of Information Technology,Govt. of Nagai and, ew Secretariat (Thizama Road),Kohima- 797001, Nagaland

12. Secretary (IT), Department of Information Technology,Govt. of Uttarakhand, Uttarakhand Secretariat,Subhas Road, Dehradun - 248 001, Uttarakhand

13. Secretary, Department of Information Technology,Govt. of Jammu & Kashmir, 1st Floor, Room-III,Secretariat, Srinagar, Jammu & Kashmir

14. Additional Chief Secretary, Department of InformationTechnology, Govt. of Himachal Pradesh, IT Bhavan, Mehli,Shimla-13

15. Secretary (IT), Department ofInformation Technology,Govt. of Jharkhand, Jharkhand Mantralaya,Project Building, Dhurwa, Ranchi- 834 004

16. Commissioner & Secretary, LT. & Communication Deptt.Govt. of Rajasthan, IT Building,Yojana Bhawan,Tilak Marg, C-Scheme, Jaipur-302005, Rajasthan

17. Commissioner & Secretary, Information TechnologyDepartment, Government of Assam, Assam Sachivalaya,Block C , 3rd Floor, Dispur, Guwahati -781006, Assam

18. SO (SB),DeitY, New Delhi: For guard file.

Copy for information: Chairman (PRSG)/ Joint Secretary & GC (eGov), MeitY.

Page 2 ofl0

3(113)/2008-EG-II (Vol-II)08-September-2016

Minutes of Meeting

Subject: Minutes of the Project Review and Steering Group (PRSG) Meeting on "ProvidingBroadband connectivity to 2500 CSCs in North East & difficult areas throughNICSI" held on 9th August, 2016 at 03:00PM, under the Chairmanship of JS & GC(eGov), MeitY.

A PRSG Meeting was held under the Chairmanship of Joint Secretary & GroupCoordinator (eGov), MeitY on 9th August 2016 at 03:00 PM to review the status of the projectbeing implemented by CSC Spy as implementing agency and NICSI as an agency for setting upVSATHub & providing connectivity (Satellite Bandwidth) to VSATsat CSCs.

2. The list of participants is placed at Annexure A.

3. At the outset, the Chairman welcomed the members present in the meeting room andrepresentatives of States on Video Conferencing (VC). The Chairman advised to provide theprogress made during the implementation of the project. Accordingly, the PRSGwas apprised ofthe progress made for the project in 12 States with regards to the physical progress and financialprogress made under the CSCVSAT Project.

4. The following points were discussed:i) The physical progress made under the project for month of July 2016 (Monthly Report)

can be seen at Annexure B.ii) The financial progress made under the project is at Annexure C.iii) During the deliberations and discussions with the States' representatives on VC/Meeting

Room and other members from MoRD, NICSI, NIC and MeitY, following actions pointswere recommended by the Committee:

a) The States need to submit pending Utilization Certificates of the funds releasedunder CSS (ACA) for the project. The details can be seen at Annexure D. (Action:States)

b) As per the direction received from Department of Expenditure, Ministry of Financeon new funding pattern for FY2015-16,the NeGAP scheme would be optional for theStates and funding shall be shared in the ratio of 80:20 (NE & Hilly States), 50:50(other States) and 100:0 (UTs) between the State/UT and Centre. The Centre shareshall be released directly to the approved implementing agency of the Project. TheState(s) were requested on 27.06.2016 to confirm their desire to opt for the saidpattern of funding for the year 2015-16.In this regard, only State of Meghalaya hasexpressed its desire to receive funds under the said funding pattern. The States needto confirm their desire to opt for the above mentioned funding pattern, and send theUtilization Certificate for the funds received so far under the ACA component. Thedetails of funds remaining for release can be seen at Annexure D. (Action: States)

c) As the project duration would be ending in March 2017, the States need to maintainstock register of the inventories under the project and adopt the project and itsexpenditures for further maintenance and continuation of the bandwidth. Hence, aroadmap needs to be decided by the States for the complete ownership of the project,

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post completion of funding from MeitY.CSCSpy being the implementing agency forsupply, installation & commissioning shall coordinate with the States for stock entryworks and Project Closure Report. (Action: States & CSC SPV)

d) CSC Spy would assess the actual utilization of VSAT bandwidth by the VLEs on theground. Hence, it was requested to NICSI to provide the connected list ofCSCs/VLEs using the VSAT bandwidth, which CSC SPY had provided to NICSIearlier during installation/commissioning (I&C). CSC SPY would then verify theconsumption of VSAT bandwidth by the VLEs and submit it to the StateGovernments. (Action; CSC Spy and NICSI)

e) The States also need to prepare an exhaustive list of existing users of the VSAT andprovide the same to CSC SPY. CSC SPY would co-ordinate with the States forverification of the actual VSAT bandwidth utilized by the VLEs in all the States.(Action: States and CSC SPY)

f) As reported by many States like: Assam, Tripura, Manipur, Mizoram etc. M/ s.Hughes Communications India Ltd. selected by CSC Spy as the vendor for Supply,Installation and Maintenance of VSATs, is not responding to the Statescommunications for fault attendance. CSC SPYneeds to take appropriate and urgentaction to resolve the issues faced by the States related to failures and non-complianceof Hughes Net. (Action: CSC SPV)

g) NIC & NICSI briefed the chair that to provide VSAT services, a License from DoT isrequired, which NICSI obtained to provide VSAT service to CSCs, after payment ofrequired fees to DoT. As per license conditions, NICSI has been making license feepayments @ 11.5% of its AGR (Adjusted Gross Revenue) accruing to its VSATServices only, based on a clarification issued to NICSI by DoT. However, DoT hasrecently informed NICSI that as per 2011order of Hon'ble Supreme Court of India, acompany's entire revenue would be taken as AGR for license fee calculation. In viewof this, NICSI is not in favour of continuing VSAT License beyond March 2017,as anyadverse order, would result in huge financial loss to NICS!. NICS I Intimated that inthe event of adverse order, the AGR/License fee may have to be paid on the totalincome of NICSI w.e.f. 2009 for which additional amount for 2009-16 has beenestimated as Rs. 450.28Crore. This has already been taken up with DeitY & DoT.

h) NIC & NICSI suggested that if the continuation of CSC VSAT Project after March2017 is required, following can be done:

A new captive VSAT License may be obtained from DoT by CSC Spy or anyother suitable agency of MoRD (as MoRD VSATs are also operational on CSCVSATHub) and transfer the VSATNetwork components to the new Licensee.Another option could be, any institution or organisation already having License(e.g. ERNET) may also take over the CSC VSAT project and run the VSATNetwork under their existing license.A third option could be to shift all VSATs to any other VSAT service provider'sVSAT hub, provided that the service providers VSAT Hub should be of sametechnology as that of the existing VSAT Modems, i.e. Hughes. NICSI wouldextend full support & co-operation for smooth transition of VSATnetwork to thenew licensee/agency / service provider based on the option selected byMeitY/CSC SPY/MoRD.Further, NICSI informed the committee that since MeitY is closing the CSCVSAT project in March 2017 , NICSI is going to initiate the process for closureof said project on 31st March 2017 by surrendering the VSAT Licence,Bandwidth etc. (Action: NICSI, CSC SPV & MeitY).

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i) With regard to the MoRDVSATs,which are sharing the bandwidth of CSCVSATs, itwas discussed that on account of the project ending in March 2017, MoRD needs towork out a plan so as to operate the VSATsat Block levels with requisite bandwidthbeyond March 2017. As also mentioned above at point 'h', MoRD needs to take adecision for obtaining a captive license itself, or continue under the organizationsalready having license like ERNETor CSCSpy ( in case CSCSPY decides to obtain alicense). CSC Spy and NICSI would provide necessary support to MoRD for smoothtransition of their VSATs as per the option selected by them. (Action: MoRD, CSCSPY and NICSI, MeitY).

j) NICSI further apprised that, it is incurring operational expenses primarily towardsSatellite Bandwidth, VSAT License fee and other regulatory charges. In order to runthe services till 31 March 2017,NICSI needs an estimated amount of Rs. 9.63 crores.Due to shortage of project fund, NICSI is unable to make timely payment to ISRO(towards Satellite Bandwidth) and DoT (towards regulatory charges). NICSI needsurgent transfer of Balance funds, as in the event of non-payment of satellitebandwidth dues, ISROmay withdraw the bandwidth which would result in servicedisruption. Hence, the concerned State Governments were once again requested toexpedite submission of pending UCs against the funds sanctioned in FY 2014-15under the instant project on CSC VSAT. The implementing agencies- CSC SPY andNICSI were also requested to provide necessary assistance/ coordination at Statelevel for an early submission of desired UCs by concerned State Governments. It shallenable this Ministry to process for further release of bandwidth charges to NICSI asper current funding pattern of 80/20 & 50/50 basis between Central & States, asindicated above in para-3 b). The State Governments were also requested to makeprovision in their budget to release their share of 20% / 50 % on the remainingbalance of the outlay. The details can be seen at Annexure D. (Action: States, CSCSPY, NICSI, MeitY)

Meeting ended with a vote of thanks to and from the Chair.

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

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Annexure AList of Participants:

1. Sh. Sanjiv Mittal, LAS., Joint Secretary & GC (eGov), MeitY- Chairman2. Dr. A. S. Mathew, LA.S., Joint Secretary, MoRD, New Delhi3. Sh. Pravin Chandekar, Director, MeitY, New Delhi4. Sh. Dayal Khandelwal, Technical Director, NIC, New Delhi5. Sh. N Deben, Addl. Director, DIT, Govt. of Manipur6. Sh. N Deben, Addl. Director, DIT, Govt. of Manipur7. Sh. Gyan Ranjan Nanda, Scientist-D, NIC, New Delhi8. Sh. Notan Roy, Scientist-C. MeitY, Gol9. Sh. Girish Chandra, GM, NICSI, New Delhi10. Sh. Korath Mathews, COO, CSC e-Governance Services India Ltd. (CSC SPY)11. Smt. Sourni Banerjee, AVP, CSC SPY12. Sh. Suhas Ranjan, Consultant, NeGD13. Sh. Chetan Laad, Sr.Consultant, PwC14. Sh. Alok Sharma, CSC SPY15. Representatives from States on VC:

a. Assam- Availableb. Himachal Pradesh- Availablec. Jammu & Kashmir- Availabled. [harkhand- Availablee. Meghalaya- Availablef. Mizoram- Availableg. Nagaland- Availableh. Rajasthan- Available1. Tripura- Availablej. Uttarakhand- Availablek. Arunachal Pradesh- Not Available

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Annexure B

(Details as reported in tile monthly progress report of CSC SPV)Out of 2500 VSATs, a total of 1959 have been commissioned till date.

Status of CSC VSATs in NER and other inaccessible areasS. Total V- Total Sites Total Total Non NonNo State SATs (WPC Commissioned Commissione Migrated MigratedOrdered cleared) d

1 Arunachal 90 90 83 7 77 6Pradesh2 Assam 354 347 280 67 206 74

3 Himachal 361 341 241 100 197 44Pradesh

4 Jammu & 37 47 28 9 26 2Kashmir5 Jharkhand 362 325 276 49 247 296 Manipur 355 349 265 84 240 257 Meghalaya 147 147 141 6 102 398 Mizoram 136 135 119 16 103 169 Nagaland 127 96 53 43 50 310 Rajasthan 167 167 155 12 155 011 Tripura 145 144 123 21 112 11

12 Uttarakha 207 206 195 11 158 37nd

Total 2488 2394 1959 425 1673 286

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Annexure C

Financial Progress

~ Outlay: Rs. 49.88 Cr. -(NICSI- Rs. 40.56 Cr. as GIA & ACA being Rs. 20.28 Cr. each, and,CSC SPV- Rs. 9.32 Cr. as GIA)

~ Released fund: Rs. 34.56 Cr.• GIA: Rs. 29.60 Cr. (Rs. 20.28 Cr. to NICSI and Rs. 9.32 Cr. to CSC SPY).• ACA: Rs. 4.96 Cr. to the above mentioned States except Assam for payment of

bandwidth charges to NICS!.

~ Progressive release till date is Rs. 33.87 Cr.(That includes, GIA progressive release to NICSI Rs. 20.28 Cr, GIA progressive release to CSCSPY Rs. 8.63 Cr., ACA release Rs. 4.96 Cr.)

~ Utilization: Rs. 29.3075 Cr.GIA:• NICSI has submitted UCs against GIA (Rs. 20.28 Cr.).• CSC SPY has submitted UCs against GIA for Rs. 8.63 Cr. and refunded Rs. 0.69 Cr. on

23.06.2016.ACA:• Meghalaya has submitted an UC of Rs. 39.75 lakhs dated- 21.07.2016.• Remaining States (10) have not yet submitted UCs against CSS (ACA) released in FY

2014-15. The States have been requested for the submission of the pending UCsvide Letter No. 3(113)j2008-EG-II (Vol-II) dated 29.02.2016 and 22.06.2016.

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Annexure D

ACA Component under the Project -"Providing Broadband connectivity to 2500 CSCs usingVSAT in NER and other inaccessible region of the country"

(Rs. in Lakhs)S. State ACA Transferred by Sanctioned UC TotalNo. component the States to by Deity to submitted Eayment

for NICSI from the States for by the releasedBandwidth then existing release to States forcharges ACA shared of NICSI in FY bandwidth(as per CSC scheme 2014-15 chargesPlan)

(T) (X) (Y) (X+Y)

1 Arunachal 73 0 24.34 0 24.34Pradesh

2 Assam 293 56.51 0 0 56.513 Tripura 120 0 39.21* 0 39.21

4 Himachal 299 52.73 50 0 102.73Pradesh

5 Meghalaya 122 0 39.75 39.75 39.756 Manipur 294 0 95.99 0 95.997 Mizoram 112 27.00 36.77 0 63.778 Nagaland 105 0 34.34 0 34.349 Uttarakhand 171 0 44.27227 0 44.2722710 J&K 31 0 10* 0 1011 Jharkhand 270 0 88.15* 0 88.1512 Rajasthan 138 0 32.96592 0 32.96592

Total 2028 136.24 495.7882 39.75 632.0282

(Rs. in Lakhs)S. State Balance for Central Share State ShareNo. payment

T-(X+Y)1 Arunachal Pradesh 48.66 80% 38.928 20% 9.7322 Assam 236.49 80% 189.192 20% 47.2983 Tripura 80.79 80% 64.632 20% 16.1584 Himachal Pradesh 196.27 80% 157.016 20% 39.2545 Meghalaya 82.25 80% 65.8 20% 16.456 Manipur 198.01 80% 158.408 20% 39.6027 Mizoram 48.23 80% 38.584 20% 9.6468 Nagaland 70.66 80% 56.528 20% 14.1329 Uttarakhand 126.72773 80% 101.382184 20% 25.34554610 J&K 21 80% 16.8 20% 4.211 Jharkhand 181.85 50% 90.925 50% 90.92512 Rajasthan 105.03408 50% 52.51704 50% 52.51704

Total 1395.9718 1030.71222 365.25959The above calculation is tentative and subject to change according to the financial cntena, as& when required.

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* 1. NICSI has informed during the meeting that following States have not yet released bwcharges against sanction of 2014-15made by DeitY:i) Jharkhand: Rs.88.15Iakhsii) Tripura: Rs.39.21Iakhsiii) J&K: Rs. 10.00lakhs

Rs.137.36Iakhs

As per the new funding pattern for FY 2015-16, as decided by Department of Expenditure,Ministry of Finance the NeGAP scheme would be optional for the States and funding shall beshared in the ratio of 80:20 (NE & Hilly States), 50:50 (other States) and 100:0 (UTs) between theState/UT and Centre. The Centre share shall be released to the approved implementing agencyof the Project. The State(s) were requested on 27.06.2016to confirm their desire to opt for the saidpattern of funding for the year 2015-16.In this regard, only State of Meghalaya has expressed itsdesire to receive funds under the said funding pattern. Other States are yet to confirm theiradoption for the same.

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