BSNL Sales and Distribution Policy

8/11/2019 BSNL Sales and Distribution Policy

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CM Sales and Distribution Policy - 2012

Bharat Sanchar Nigam Limited


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!ND"#

1$ %ranchisee Sales and Distribution Policy 2012... 04

Section 1: Roles and Responsibilities...... 04

A. Geographic area..... 04

B. Responsibilities of Franchisee..... 04C. Responsibilities of BS! 0"

Section #: $ligibilit% criteria .... . 0&

'. 'i(ensioning of Franchisee )erritories: ... 0&$. $ligibilit% Re*+ire(ents for BS! Franchisee,ship 0&F. Rela-ation in $ligibilit% Criteria.... 0

Section /: Selection process and criteria ... 10

G. $-pression of nterest Ro+te:... 10

. )er(s 2 Conditions 3ith $ .. 11. !oo5,after arrange(ent:.... 1#6. 7igration polic% for e-isting franchisees:.... 1#8. $-tension of agree(ent ... 1/!. Re*+ire(ents after $ Appro9al ... 1/7. Selection criteria for franchisee,ship .. 1/. Scoring G+idelines for Selection Criteria:.. 14

Section 4: )arget Setting andPerfor(ance 7anage(ent . 1"

4.1 )arget Setting ...... 1"

4.# Perfor(ance 7anage(ent ..... 1

Section ": 'isco+nts 2 Co((issions for Franchisee ... 1

. Penalt%: ... 1P. General )er(s 2 Conditions ...... . #0

2$ e-Distributor Policy 2012 ... ##3$ DS& Policy 2012 ... #"'$ (ural Distributor Policy 2012 ... #

&NN"#)(" * &Role of Sales )ea( 7e(bers ... /#

&NN"#)(" * B+(ber of Franchisee )erritories in Circle ..... /4&NN"#)(" * CProd+ct !ist of F7CG nd+str% ........./"&NN"#)(" * "Sharing of 'isco+nt; Co((ission a(ong channel Partners /

&bbre+iations..................... / to be effecti9e fro( 01.0


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%ranchisee Sales and Distribution Policy 2012

Section 1 (oles and (es.onsibilities

&$ /eogra.hic area

a. 'efinition of Geographical areas: All Franchisees sho+ld ha9e 3ell definedgeographical area @to be defined b% SSA and notified in the franchiseeAgree(ent. )his 3ill be their pri(ar% area and the franchisee (+st f+lfill allthe re*+ire(ents as per the polic% in this pri(ar% area onl%.

b. Franchisee is not allo3ed to sell o+tside the Pri(ar% Area in an% case @e-ceptin cases 3here the franchisee has been allo3ed to sell in a territor% for ali(ited period thro+gh a loo5,after arrange(ent. An% 9iolation is to be 9ie3edserio+sl%? 3ill attract penalt% as per cla+se Sec, "@@band the agree(ent3ith s+ch franchisee be discontin+ed and the franchisee (a% e9en be barredfor f+rther dealing 3ith BS! for a period of # %ears in case the 9iolation so3arrants.

B$ (es.onsibilities o0 %ranchisee

a. Selling of all BS! Prod+cts and ser9ices assigned to the(? directl% orthro+gh R+ral 'istrib+tors @R's or retailers.

b. )3o tier str+ct+re for +rban and three tier str+ct+re for r+ral areas b%incorporating inter(ediate channel of R's.

c. Generation of de(and for ser9ices per(itted b% BS!.d. Appoint(ent of Retailers

Franchisee (+st appoint s+fficient n+(bers of retailers in the territor% s+chthat:

i. $ach B)S area ha9e atleast & retailers

ii. ne retailer in +rban co((ercial area at e9er% #00(?iii. ne retailer in +rban residential area at e9er% "00(?

iv. Atleast one retailer in e9er% illagee. R+ral Retailers 3ill be appointed and ser9ed b% R's in / tier s%ste(.f. 7eeting and e-ceeding all targets set b% SSA;Circle for the franchisee.

Franchisee is responsible for (eeting these targets thro+gh all channelentities 3or5ing +nder hi(.

g. CAF collection? doc+(entation @ph%sical doc+(entation as 3ell as electronicdoc+(entation and ti(el% s+b(ission of doc+(ents to BS! as perreg+lator% g+idelines and BS! instr+ctions. nce the CAF has beendeposited b% the Franchisee +nder receipt to BS!. )he responsibilit% ofdoc+(ents s+b(itted in s+pport of c+sto(er identit% 2 address 3ill be on

Franchisee for period of 0 da%s fro( date of deposition of CAF. BS! official3ill chec5 the doc+(ents 3ithin 0 da%s and if an%thing is fo+nd 3rong 3ithrespect to ');)$R7 g+idelines than the for( sho+ld be reected;correctedand a to5en penalt% of Rs #00;, shall be i(posed per 3rong CAF onfranchisee.

h. erification of credentials of c+sto(ers D erification of PA @photo? identit%and address of c+sto(er at the PS @Point of Sale has to be done as perthe 9ario+s g+idelines iss+ed b% 'o) and BS! fro( ti(e to ti(e.Franchisees 3ill be responsible for the 9erifications done b% all the channelsi.e. R+ral 'istrib+tors and retailers 3or5ing 3ithin their net3or5.

i. peration of ) tools and s%ste(s pro9ided b% BS! as specified fro( ti(e toti(e? incl+ding hiring data entr% operator if re*+ired.

. Appointing re*+ired n+(ber of FoS @Feet,on,Street e-cl+si9el% for BS! toser9ice retailers as per the target set b% SSA;Circle.

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d. Resol+tion of iss+es @incl+ding s+ppl% of S7s? disco+nt;co((ission pa%(ent?ser9icing of retailers? cross,selling? etc. raised b% franchisees? r+raldistrib+tors? franchisee (anagers? R7C? retailer (anagers? retailers and an%other (e(ber of the Sales 2 7ar5eting tea(. SSA Sales ead (+st (aintaina log of all co(plaints recei9ed and pro9ide reg+lar +pdate to SSA ead onaction ta5en to resol9e o+tstanding iss+es.

e. t 3ill be the responsibilit% of the Acco+nt fficer to re(it the collection fro(

the franchisee to credit to Co(pan%Es acco+nt on a dail% basis and ens+rerealiHation of the che*+e.

f. )he che*+e deposited b% the Franchisees sho+ld be deposited 3ith ban5 forrealiHation on the sa(e da%? )he Acco+nt fficer shall be responsible forens+ring collection? deposit 3ith the ban5 and realiHation of the che*+e@s.

g. Acco+nt fficer shall (aintain an acco+nt of in9entor% recei9ed? sold andpa%(ents realiHed on dail% basis and sent it to acco+nts 3ing along 3ithRe(ittance state(ent.

h. Franchisee (anager ; SSA Sales ead @7obilit% to ens+re that an% sales tofranchisee b% BS! and an% sales b% franchisee f+rther to retailers or r+ral

distrib+tors is recorded in BS! specified ) s%ste(.

i. )he Sancharsoft 2 stoc5 register gi9ing details of (aterial gi9en to theFranchisee sho+ld be properl% (aintained and (onitored on reg+lar basis b%SSA Sales ead @7obilit% and ead of SSA;G7 Area in a PG7;Circle eadset +p.

. ead of Circle ; SSA 3ill ens+re that stoc5s are a9ailable in s+fficient *+antit%in re*+ired deno(inations 3ell in ad9ance.

5. 'efecti9e stoc5 3ith the channel partners sho+ld be replaced i((ediatel%.

l. 7RP of the prod+cts in 3hole n+(bers sho+ld be displa%ed. )he stoc5s anddistrib+tion of p+blicit% (aterials li5e broch+res etc.? preferabl% in locallang+ages also sho+ld be a9ailable in s+fficient *+antit%.

(. )he SSA sho+ld (aintain s+fficient stoc5 of in9entor% so that the% can f+lfillthe de(and for pro9isioning of the stoc5 as re*+ired b% the franchisees? R+ral'istrib+tors and other point of sales. )here sho+ld be ade*+ate arrange(entfor iss+ing stoc5 to Franchisee;'SAs or their representati9es? 3itho+t (a5ingthe( t+rn a3a% e(pt% handed.

n. n order to pro(ptl% recei9e CAFs? there sho+ld be at least one des5 or

co+nter? totall% dedicated to accept CAFs fro( Franchisees;'SAs at apro(inent location in e9er% cit% and sho+ld be (anned on all da%s e-cept onS+nda% 2 olida%. 'etails of in,charge and location of s+ch CAF 'es5 sho+ldbe inti(ated to all Franchisees; 'SAs.

o. $ns+re ti(el% pa%(ents to all channel partners preferabl% online.

p. t 3ill be (andator% on (onthl% basis to reconcile the acco+nt of prepaidprod+ct along 3ith report.

*. Ph%sical 9erification of C7 stoc5 sho+ld be done as per periodicit% decided b%CG7s.

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r. Reg+lar (eeting 3ith franchisee; channel partner b% CG7s ; SSA eads asper instr+ction iss+ed b% corporate office.

s. )he follo3ing ite(s shall be gi9en free of cost to franchisees for perfor(ingtheir responsibilities? incl+ding for de(o p+rpose? and is not lin5ed 3ith thetargets:

i. ne rent free landline connections 3ith inco(ing facilit% onl%.ii. ne rent free landline connections 3ith Broadband plan , BBG

Co(bo I!' &"0 @free call /"0 3ith Inli(ited 'o3nload;Ipload.iii. ne rent free P o9er Broadband @PoBB #" plan

iv. ne rent free GS7 post,paid Plan , "#"? calls be%ond freebies shallbe pa%able.

ote:, Abo9e facilit% shall be +pto the 9alidit% of agree(ent

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Section 2 "ligibility criteria

D$ Dimensioning o0 %ranchisee 3erritoriesa. +(ber of Circle,3ise territories is (entioned in Anne-+re,B.b. n cases 3here SSA consists of areas of 9ar%ing potential? SSA ead 3ith the

appro9al of Circle ead can con9ert one class of franchisee territories into

another class 3ith proper +stification onl%.nl% territor% A can be changed toterritor% B and not C. Si(ilarl% territor% B can be changed to )erritor% C and9ice 9ersa. i.e. 1A J 1B? 1B J 1C.

c. f there is need to increase or decrease the n+(ber of territories in a Circle?proposal 3ith +stification 3ill ha9e to be sent to the corporate office and there*+ired change 3ill be effected onl% after appro9al fro( corporate office b%'irector, C7.

d. +(ber of territories per(issible to a franchisee in a circle is restricted tonor(all% three @+pto # territories thro+gh $o ; 7igration K loo5 after territor%?ho3e9er this co+ld be fo+r as stated in para, f.

e. 7a-i(+( "0 of SSA territories or / 3hiche9er is less @+pto # territoriesthro+gh $o ; 7igration K loo5 after 3ithin the SSA

f. +(ber of territories per(issible thro+gh $o to a franchisee in a circle isrestricted to t3o territories. o3e9er he (a% participate in one (ore territor%in second or s+bse*+ent ro+nds 3here9er there is no bidder in first ro+nd of$o.

g. Franchisees are allo3ed to (igrate in all the e-isting territories @+pto threeterritories as per the proced+re. n case the n+(bers of (igrated territoriesare three then he canEt participate in the $ b+t can be gi9en one loo5 afterterritor% depending on need. f he has (igrated in t3o territories then he canparticipate for one territor% in the #ndro+nd of $o and can be gi9en one loo5after territor% as needed.

"$ "ligibility (e4uirements 0or BSNL %ranchisee-shi. 0or each 0ranchiseeterritoryAll proprietorship fir(? partnership fir(s and co(pan% of ndian origin f+lfillingfollo3ing criteria are eligible to appl%.a. urn o+er)+rno9er is defined as sales proceed as per a+dited P2! acco+nt

of the fir(? s+b(itted for last financial %ear. A cop% of inco(e ta- ret+rn sho+ldalso be s+b(itted along 3ith.

i. Rs."0 !a5hs for A class territor%ii. Rs./0 !a5hs for B class territor%iii. Rs. !a5hs for C class territor%

b. "5.erience: nterested fir(s (+st be distrib+tor of )eleco( ; F7CG ;$lectronics ; $lectrical prod+cts 3ith established retail chain for :

i. / %ears for class A territor% o+t of last " %earsii. # %ears for class B territor% o+t of last 4 %earsiii. 1 %ear for class C territor% o+t of last / %ears

A detailed prod+ct list for F7CG ind+str% is pro9ided in Anne-+re,C. A3holesale or stoc5iest b+siness e-perience in the abo9e categories sho+ldnot be considered as distrib+tion e-perience. A cop% of certificate fro()eleco( or F7CG or other sho+ld be attached. n case there is a(big+it% inthe interpretation of Anne-+re,C? the decision of Circle ead 3ill beconsidered final.ote: 'SAs and R's of BS! are not allo3ed to participate. o3e9er the%

(a% participate in second or s+bse*+ent ro+nds of $o 3here9er no bidder in

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first ro+nd of $o. )he e-perience of 'SAs; R's 3ill be called as teleco(e-perience.

c. S.acenterested part% (+st ens+re office space @carpet area of siHe #"0s*ft for BS! franchisee ship 3ithin operational area of the territor%. CG7sare a+thoriHed to rela- the space +pto siHe 1#0 s*ft as per local need.o3e9er it sho+ld be clearl% (entioned in $o doc+(ent. Space is to beens+red 3ithin 1" da%s of ! for a3ard of Franchisee ship.

%$ (ela5ation in "ligibility Criteria

a. f no *+alified application is recei9ed against an% franchisee territor% in $?Franchisee territor% class can be con9erted to a lo3er class as AJB? BJC.

b. f there are no bidders for a territor% then eligibilit% criteria can be rela-ed$)$R b% con9erting the Franchisee territor% class to a lo3er class asdescribed abo9e b% the ead of Circle R red+cing the $ligibilit% criteria +pto"0 3ith the appro9al of the Circle ead. o3e9er? $ 3ill ha9e to befloated again if eligibilit% conditions are rela-ed.

c. Follo3ing (eas+res (a% also be ta5en if there is no participation in the $:

=An e(po3ered co((ittee of three officers headed b% 6AG le9el officer3ith one finance (e(ber (a% be allo3ed to reco((end the na(e andproposal fro( the prospecti9e franchisees b% 9isiting their pre(ises on thebasis of eligibilit% criteria (entioned in the last $. )he reco((endedfranchisee (a% be considered for appro9al b% ead of Circle>.

ote: $(po3ered co((ittee 3ill also approach prospecti9e biddersthro+gh letters; (ails and displa% on the notice board getting 3al5 in

applications.

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Section 3 Selection .rocess and criteria

/$ "5.ression o0 !nterest (oute

a. n order to ind+ct franchisees? BS! shall in9ite $-pression of nterest @$fro( the 3illing parties. BS! reser9es the right to initiate the process for

appointing franchisee e9en if there is a franchisee c+rrentl% ser9ing theterritor% or a part of the territor%. ereafter? an% territor%? for 3hich $ isin9ited? is referred to as eligible territor%E. $ligible territories co+ld incl+de: 8acant territories)erritories li5el% to be 9acated in ne-t three (onths or

alread% 9acated d+e to ter(ination of franchisee? ten+re co(pletion offranchisee? or non,appoint(ent of franchisee in the past. f a notice ofter(ination @3ith a /0,da% deadline for ter(ination of franchisee has beenser9ed to the franchisee? the territor% can be considered as 9acantterritor%.

(edeined territoryBS! reser9es the right to redefine territories forrealign(ent; balancing of franchisee territories or in cases 3here e-istingfranchisee has not (et the perfor(ance criteria @defined in this polic% for

a period of (ore than three (onthsb. $s are to be floated and finaliHed at Circle le9el. )he appro9ing a+thorit%

3ill be the ead of circle.c. Circles (+st in9ite $ fro( 3illing parties for eligible territories.d. )o e9al+ate the short,listed bidders? a Selection co((ittee at Circle

co(prising of three (e(bers 3ill be for(ed for each SSA 3ith the appro9al ofCircle.

Selection Co((ittee at Circle le9el 3ith the appro9al of Circle ead

)3o e-ec+ti9es fro( Circle office 3ho 3ill be co((on for all Selection

Co((ittees D G7 @Sales 2 75tg,C7 and 'G7 @Finance

ne (e(ber fro( the concerned SSA , SSA ead

e. After e9al+ation b% the selection co((ittee? the reco((endation of theselection co((ittee shall be appro9ed b% Circle ead. !o to s+ccessf+lbidder shall be iss+ed b% the $ iss+ing a+thorit% 3ith the instr+ction tos+b(it the re*+isite PBG at the concerned SSA 3ithin 1" da%s ti(e fra(e forsigning the agree(ent. )he contract shall be a3arded for a period of three%ears to the s+ccessf+l bidder@s as per the ter(s and conditions stip+lated inthe $ and in the sales 2 distrib+tion polic% doc+(ent.

f. Selection by committee

f no *+alified application is recei9ed against an% franchisee territor% in $?(eas+res stated in para F@c. of section,# (a% also be ta5en if there is no

participation in the $.

g. BS! reser9es the right to re9ise so(e sections of Sales 2 'istrib+tion polic%according to change in b+siness en9iron(ent. SSA shall notif% all s+chchanges to franchisees. Franchisee 3ill be ass+(ed to be in agree(ent 3ithre9ised nor(s +nless notified to BS! in three 3ee5Es ti(e. An% part% 3ho3ishes to discontin+e the agree(ent can do the sa(e b% pro9iding a 0 da%snotice.

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h. nterested part% (+st deposit $7' of Rs. # la5h for class A territories? Rs. 1la5h for class B territories and Rs. #"?000;, for class C territories along 3ith$. )he $7' 3ill be in the for( of Ban5 G+arantee in fa9o+r of BS! and9alid for a period of 1&0 da%s fro( the date of $ opening.

i. BS! reser9es the right to reect an% application of franchisee for an% reason?3itho+t liabilit%? the infor(ation pro9ided b% the franchisee; gathered b% BS!shall beco(e BS!E s propert% e9en if application is reected and can be +sed

b% BS! in an% (anner it dee(s fit.. )he decision of BS! 3ill be final and binding.

9$ 3erms , Conditions :ith ";!

a. $ach franchisee 3ill sign Franchisee Agree(ents at concerned SSA in theCircle. Franchisee (+st not 3or5 3ith an% other teleco( operator in thecapacit% of an% role related to sales 2 distrib+tion an%3here in ndia.

b. All Franchisees sho+ld ha9e 3ell defined geographical area @to be definedand notified b% SSA;Circle. )his 3ill be their pri(ar% area and the franchisee(+st f+lfill all the re*+ire(ents as per the polic% in this pri(ar% area.

c. )he de(arcated area for 3hich the% are appointed sho+ld be the pri(ar%

area for the franchiseeEs operation? and all contract+al obligations andresponsibilities as per franchisee polic% sho+ld re(ain for this pri(ar% areaonl%.

d. Periodic perfor(ance re9ie3 (+st be done and in case of a franchisee not,(eeting the perfor(ance standards? action sho+ld be ta5en in accordance3ith Perfor(ance 7anage(ent S%ste(E section of this polic%.

e. Franchisee is not allo3ed to sell o+tside its pri(ar% area @e-cept in cases3here the franchisee has been allo3ed to sell in a territor% for a li(ited periodthro+gh a loo5,after arrange(ent. An% 9iolation 3ill be 9ie3ed serio+sl% andaction shall be initiated as per Penalt% Cla+se of this doc+(ent.

f. BS! is free to appoint s+fficient n+(ber of R+ral 'istrib+tors in franchisee

territor% in r+ral areas. R+ral 'istrib+tors 3ill be either ser9ed b% franchisee orBS! and (a% not be e-cl+si9e to BS!. R+ral 'istrib+torEs net3or5 3ill notonl% act as retail net3or5 b+t also help franchisee in ser9ing r+ral retailers.

g. Franchisee can appoint an% n+(bers of retailers 3ithin his +risdiction for saleof BS! prod+cts and ser9ices per(itted to the(. Franchisee sho+ld ser9eretailers as 3ell as r+ral distrib+tors at their pre(ises.

h. Franchisee (+st ens+re a9ailabilit% of BS! prod+cts and ser9ices at (orethan 0 of retail points @(+lti,brand o+tlets 3hich sell teleco( prod+cts3ithin their pri(ar% area.

i. $-isting c+sto(er ser9ice centers and all other channels incl+ding e,distrib+tors? R+ral 'istrib+tors? 'SAs 3ill also 3or5 as sales o+tlet for all t%peof ser9ices offered b% BS!. BS! can directl% appoint an% other channel@s

to distrib+te and sale 9ario+s teleco( ser9ices and prod+cts 3ithinfranchiseeEs pri(ar% area.

. Franchisee sho+ld ens+re (anning of office at least 1# ho+rs per da% @:00A7 to :00 P7.

5. BS! reser9es the rights to see5;9erif% financial infor(ation fro( franchiseeEsBan5ers;credit pro9iders and an% another so+rces as to carr% o+t other9erifications.

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!$ Loofor a period of three (onths for co(pleting $o ; Selection Process. f no one*+alifies the selection process the $ligible territories can be gi9en to e-istingfranchisee as =!oo5 after territor%> for a period of one %ear onl% 3ith signing of

agree(ent and obtaining s+itable ban5 g+arantee. After e-pir% of (onths ofloo5,after agree(ent? perfor(ance 3ill be e9al+ated b% the Circle ; SSA eadon the basis of achie9e(ent against applicable bench(ar5. f c+(+lati9eachie9e(ent is (ore than or e*+al to bench(ar5 then the territor% (a% beallotted on reg+lar basis for the balance period i.e. three %ears less theco(pleted period of loo5ing after.

b. n case the perfor(ance of loo5,after territor% is not +pto (ar5 then $ (a%be floated i((ediatel% and no f+rther loo5 after e-tension 3ill be gi9en aftere-pir% of one %ear. A ter(ination notice (a% be iss+ed to the loo5ing afterfranchisee after si- (onths if his perfor(ance is poor? infor(ing that he 3ill beter(inated as soon as a ne3 franchisee is selected thro+gh fresh $.

c. )he perfor(ance of franchisees @S7 sales and (obile recharge sales

sho+ld be +sed as criteria to decide allot(ent of !oo5 after territor%E asdecided b% Circle ead.

d. ne franchisee can get as (an% as territories as =!oo5 after )erritor%> at an%gi9en point of ti(e s+bect to the condition that total territor% incl+ding loo5after territor% to a franchisee in a Circle;SSA sho+ld not be (ore than(a-i(+( per(issible territories @as per cla+se, ' of section, #.

e. )he priorit% for loo5,after arrange(ent 3ill be as follo3:i. Priority order 1: !oo5 after arrange(ent can be (ade 3ith franchisee?

3hich has been s+ccessf+l to achie9e the prescribed bench(ar5in his;herreg+lar territor% in that SSA 3hich is sharing bo+ndaries 3ith the territoriesin *+estion.

ii. Priority order 2: nl% if no franchisee is fo+nd +nder Priorit% order 1E?loo5 after arrange(ent can be (ade 3ith e-isting franchisee 3ho is nearerto the 9acant territor% in the sa(e SSA and achie9ing the prescribedbench(ar5 in his;her reg+lar territor%.

iii. Priority order 3: f there is no franchisee fo+nd +nder Priorit% order 1E andPriorit% order #E then a franchisee sho+ld be chosen based on CG7Esdiscretion and FranchiseeEs conc+rrence.

=$ Migration .olicy 0or e5isting 0ranchiseesa. $-isting franchises are eligible for (igration in C7 , Sales 2 'istrib+tion

Polic% #01# in the respecti9e territories onl%. )erritor%,3ise perfor(ancee9al+ation for (igration 3ill be done on the basis of last si- (onths

achie9e(ent in respect of FRC; Plan o+cher K RC @C,)PIP onl% and c+toff score is "0 indi9id+all%.

i. )hose 3ho (eet the c+t,off score 3ill be (igrated for three %ears and

ii. Re(aining )erritories of Franchisees 3ill be ran5ed on the basis ofFRC ; Plan o+cher 2 C,)PIP recharge 3ith 0 2 40 3eightagerespecti9el%. )op &0 perfor(ers 3ill be (igrated for # %ear. Rest#0 botto( perfor(ers 3ill be re(o9ed? ho3e9er loo5,after for /(onths (a% be gi9en for these territories d+ring 3hich $o 3ill befinaliHed.

b. o change in e-isting territories is allo3ed in (igration process.c. n case $o is +nder process for li5el% to be 9acated territor%. n s+ch cases

the (igration 3ill onl% be applicable till the finaliHation of $o ; signing of

agree(ent.

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>$ "5tension o0 agreement)he e-tension forne-t t3o %ears @on %ear to %ear basis can be granted?pro9ided that the franchisee has been perfor(ing 3ell i.e.? achie9ing theprescribed bench,(ar5 score d+ring the last one %ear and achie9ing c+t off

score in t%pe A para(eters.

L$ (e4uirements a0ter ";! &..ro+al

a. As (entioned abo9e? selection of the franchisee 3ill be done b% a selectionco((ittee for(ed at Circle le9el for 3hich the franchisee is being selected.)he $;agree(ent 3ill be fra(ed; c+sto(iHed b% concerned Circle;SSAbased on pro9isions in this franchisee polic%.

b. PBG @Perfor(ance Ban5 G+arantee of: Rs./ !a5hs for class A territor%?

Rs.# !a5hs for class B territor% and

Rs.1 !a5hs for class C territor%

to be s+b(itted before signing of agree(ent 3ithin 1" da%s of !.c. Franchisee shall deposit the aforesaid PBG of said a(o+nt as deter(ined b%

BS! fro( ti(e to ti(e. BS! reser9es the right to forfeit;ad+st;appl% thesaid $7';PBG a(o+nt in f+ll or part of an% s+(s d+e fro( the franchisee toBS! at an% ti(e. Franchisee shall contin+e to be liable for balance? if an%? nointerest 3ill be paid on the deposit. BS! reser9es the right to increase thea(o+nt of PBG at an% ti(e in its sole discretion 3ith respect to an%;so(e;allfranchisee.

d. After appro9al of $ b% Circle? the Agree(ent shall be signed b% the SSA?PBG @Perfor(ance Ban5 G+arantee shall also re(ain in concerned SSAs?Franchisees 3ill be (onitored and s+pported b% SSA. Pa%(ents 3ill be done

fro( SSA @e-cept in case of special sche(es 3here Circle can also (a5e thepa%(ent.

e. PBG 3ill be treated as sec+rit% deposit and no s+ppl% of (aterial 3ill beallo3ed against PBG.

f. 7aterial can be iss+ed to franchisees against R)GS or Che*+e on realiHationof 7one% in BS! acco+nt or against Cash ; 'raft. )he prefer (ode for f+ndtransfer for the franchisees to get (aterial is R)GS.

g. Franchisee (a% open an acco+nt 3ith R)GS;online transfer facilities in theban5 in 3hich BS!Es acco+nt is in concerned SSA. Franchisee shall (a5epa%(ent to BS! for (aterial s+ppl% preferabl% b% online transfer;R)GS(ode. An% charges for online transfer or R)GS 3ill be borne b% franchisee.

h. Roll o+t Plan: "0 of the retailers as (entioned in para B of Section 1 sho+ld

be acti9e 3ithin / (onths fro( the date of signing of agree(ent and 100retailers sho+ld be acti9e 3ithin (onths of signing of agree(ent.

M$ Selection criteria 0or 0ranchisee-shi.

a. )he (a-i(+( (ar5s for eligible bidders in selection criteria for selection offranchisees 3ill be as follo3s:

i $-perience of fir( #0 (ar5s

ii )+rno9er 10 (ar5s

iii Place 1" (ar5s

i9 nter9ie3 ; Presentation " (ar5s

Page 13of 3


14/37


b. Short listing 3ill be done on the basis of point n+(ber @i to @iii and top threesho+ld be called for inter9ie3. Final selection 3ill be done based on co(bined(ar5s.

c. All para(eters are as defined +nder the $ligibilit% Re*+ire(entsE section.Place is ascertained as the place 3here fir(;co(pan% is registered @ser9iceta- registration or 3here it has operations @e-isting shop;office for atleastlast t3o %ears or (ore.

N$ Scoring /uidelines 0or Selection Criteria

a$ "5.erience o irm ?otal Mar


15/37


Section ' arget Setting and Perormance Management

'$1 arget Setting)argets 3ill be assigned b% Circle to SSAs and thereafter SSA 3ill assignfranchisee,3ise rolling target. $ach SSA sho+ld set the rolling targets for C7prod+cts for ne-t t3o calendar (onths on 9ario+s para(eters as defined belo3on or before the #"th of pre9io+s (onth. n case of holida%s? it sho+ld be

co((+nicated on or before last 3or5ing da% before the #" th.

'$1$1 Parameters or Setting o SS& arget$

a %(C A Plan8oucher

Gross connections @S7 acti9ations SSA 3ise andFranchisee 3ise

b (C Recharge sales D SSA 3ise and Franchisee 3ise

cP;S

Acti9e Retailer : !oading FRC ; P!A IC$RActi9e Retailer : !oading RC

d CDM& Sale targets for other Cons+(er 7obilit% prod+cts D C'7A

e i-M Sale targets for other Cons+(er 7obilit% prod+cts D Li,7AM

)argets 3ill be assigned b% Circle to SSAs and thereafter SSA 3ill assignfranchisee,3ise target for abo9e areas; fields.

Circles 3ill assign targets to SSAs on (onthl% basis for the follo3ing based on:

(a) %or /SM CDM& and i-ma5 connections:)he target a(ong SSAs (a% be apportioned on the basis of , )%pe ofterritor%? total n+(ber of B)S @#G K /G in SSA in pre9io+s (onth?(ar5et potential? co(petition? desire gro3th etc.

(b) %or recharge:Recharge targets (+st be apportioned a(ong SSAs as per total no. ofacti9e prepaid connection? ARPI in the pre9io+s (onth pl+s other

i(portant para(eters li5e potential of the area? +rban,r+ral (i- ind+str%gro3th rate etc.

(c) %or P;S:Based on n+(ber of B)S

'$1$2 Parameters or Setting o %ranchisee arget$

SSA ead 3ill allocate connections at least on the last %ear percentage share b%franchisees in SSA 2 recharge target a(ong franchisees on (onthl% basis basedon n+(ber of B)S and class of territories. Re(aining target 3ill be allocated toother channels;sales partners.

a For connections:,

"0 of target as per class of territor%"0 of target as per total n+(ber of B)S in territor%

As an ill+strati9e e-a(ple?SSA target J 1"000!et &0 of (onthl% target of SSA J 1#000!et there be 1 territor% each of class A? B and C)arget to be allocated as per territor% class J "0 of 1#000J000A9erage per territor% J #000

)he 3eight age for A? B and C t%pe territor% 3o+ld be 1./? 1 and 0.< respecti9el%.

Page 1of 3


16/37


'istrib+ted target 3o+ld be for )%pe A#00

For t%pe B #000 and for )%pe C 1400

Re(aining 000 connections target (a% be allocated in proportion to n+(ber ofB)S in the territor%.

b For recharge:,SSAs (a% f+rther apportion the recharge target as per n+(ber of B)S and class

of territor%.

c For PS:SSA sho+ld ens+re that the targets set b% BS! corporate office for acti9eretailers loading RC and acti9e retailers loading FRC ; Plan o+cher is (etprogressi9el%. SSA 3ill assign target for acti9e retailers loading RC and acti9eretailers loading FRC ; Plan o+cher to franchisee based n+(ber of B)S;potential as gi9en belo3:

i. +(ber of retailers loading RC atleast & per B)Sii. +(ber of retailers loading FRC ; Plan o+cher atleast / per B)S

d Apart fro( these targets for an% other prod+cts fro( other b+siness +nits shall beset b% concerned b+siness +nits ho3e9er franchiseeEs perfor(ance re9ie3 (a%not consider achie9e(ent against those targets.

'$2 Perormance Management $ach SSA (+st cond+ct a re9ie3 (eeting in first 3ee5of e9er% calendar (onth 3here each franchiseeEs perfor(ance in pre9io+s (onth(+st be e9al+ated. $ach Circle (+st cond+ct a re9ie3 (eeting e9er% *+arter tore9ie3 the sa(e. )his (eeting (+st be cond+cted 3ithin fifteen da%s of *+arterending.

&..ointment o (e+ie: committees

i. $ach SSA (+st appoint a perfor(ance re9ie3 co((ittee of at least threee-ec+ti9es 3hich (+st consist of SSA ead and SSA Sales ead @7obilit% andRetailer 7anager Coordinator @R7C. Franchisee (anager of partic+larfranchisee sho+ld also be part of re9ie3 disc+ssion for that franchisee.

ii. For Circle le9el re9ie3s? Circle sho+ld appoint a re9ie3 co((ittee for each SSA+nder chair(anship of G7@Cons+(er 7obilit%. $ach co((ittee 3ill ha9e threee-ec+ti9es incl+ding chair(an fro( Circle @co((on for each SSA and SSAead of concerned SSA.

Leightage for targets for e9al+ating perfor(ance

Para(eters Leightage

)%pe A Para(etersFRC ; Plan o+cher 4"

RC 1"

PS 1"

)%pe B Para(eters

of CAF for(s s+b(itted 1"

Percentage of recharge sales 9ia C,)PIP 10

)otal 100

Bench Mar< Score 0E

ote: FRC ; Plan o+cher incl+de ne3 connections of GS7 ; C'7A ; Li,

7AM.

Page 1of 3


17/37


Reg+lar perfor(ance (eas+re(ent and e9al+ation of franchisee perfor(anceneeds to be done as follo3s:

)he perfor(ance for each franchisee sho+ld be e9al+ated (onthl% b% SSAre9ie3 co((ittee on the bases of abo9e g+idelines. t sho+ld be noted that alle-isting territories of the franchisee sho+ld be aggregated 3hile calc+lating the

c+(+lati9e perfor(ance score as described abo9e. n case the franchisee hasterritories across (+ltiple SSAs? each SSA (+st pro9ide the perfor(ance inp+tsto the Circle 3ho sho+ld co(pile the franchisee perfor(ance score. SSA (+stco((+nicate the (onthl% perfor(ance inp+ts to franchisee so that he cani(pro9e.

iii. (e+ie: Process at SS& For the p+rpose of (onthl% re9ie3s 9ario+spara(eters? their scoring and c+t,offs are gi9en in table belo3

7a-i(+( score on an% para(eter 3ill be li(ited to 100.

C+t,off scores can be +p3ardl% re9ised b% Circle re9ie3 co((ittee 3ith at least0 da%s notification to franchisees. Apart fro( the para(eters listed abo9e?re9ie3 co((ittee sho+ld disc+ss abo+t an% other co(plaints recei9ed abo+t thefranchisee and 3arnings ; (onetar% fines co+ld be iss+ed ; i(posed. SSAco((ittee (+st prepare a scorecard for each franchisee before (onthl% re9ie3(eeting. )he scorecards for three (onths sho+ld be sent for Circle le9el re9ie3each *+arter.

i9. (e+ie: Process at CircleASS& Re9ie3 co((ittee at Circle sho+ld cond+ct are9ie3 of each franchisee e9er% *+arter. Score cards for this re9ie3 shall bef+rnished b% SSAs in ti(e for the re9ie3. Circle 3ill prepare a c+(+lati9escorecard based on target achie9e(ent in the pre9io+s *+arter. Circle canre9ie3 perfor(ance of franchisees in bet3een the *+arterl% re9ie3 period also@especiall% in cases 3here the franchisee has not been (eeting perfor(ancetargets and ta5e action as described belo3.

9. (e:ards $9er% *+arter? Circles can re3ard the top fi9e franchisees in theCircle. Both t%pe AE and t%pe BE para(eters sho+ld be considered for a3ardconsideration.

Page 1of 3

Parameter ?measured onmonthly basis@

ScoringCut-;Score

1 Gross Connections GS7? C'7A?Li,7AM of target achie9ed ineach prod+ct N"0

#Re9en+e; Recharge sales GS7;C'7A; Li,7AM in (onth

of target achie9ed ineach prod+ct

N"0

/o. of retailers billed in (onththro+gh BS! specified s%ste(

of target achie9ed N"0

4 of CAF for(s s+b(itted

o. of CAF s+b(itted3ithin specified ti(efra(e as a ratio of o.of acti9ations 3ithinFranchiseeEs net3or5

N0

" of Recharge sales 9ia C,)PIPo+t of total recharge sale of target achie9ed N0


18/37


9i. Conse4uences or Poor PerormanceAn% franchisee 3ho does not (eet thec+toff score on an% para(eters @t%pe A or t%pe B beco(es liable for penalt% asper the cla+se @a in section ".

9ii. Perormance based terminationAn% franchisee 3ho does not (eet the c+t,offscore on c+(+lati9e target achie9e(ent d+ring past three (onths on t%pe AE

para(eters 3ill beco(e eligible for ter(ination. Circle re9ie3 co((ittee thenhas the right to ter(inate an% franchisee that is eligible for ter(ination b% gi9inga /0,da% notice. )otal n+(ber of ter(inations based on *+arterl% perfor(ancere9ie3 in an% (onth sho+ld not e-ceed " of total Circle franchisees. nl%franchisees 3ho ha9e been acti9e in all si- (onths sho+ld be considered for thise-ercise. An% franchisee ind+cted in past si- (onths 3ill not be considered forthis e-ercise. All franchisees 3ill be gi9en /0 da%s notice to 3ind +p operations.o3e9er (onthl% re9ie3 for the franchisees 3ho ha9e been ser9ed a otice of)er(ination 3ill happen for ne-t (onth as per the process o+tlined abo9e andan% (onetar% penalties 3ill still be applicable on non,perfor(ance. Circles (+stco(plete the process of appointing ne3 franchisee and hand,o9erarrange(ents 3ithin 0 da%s. Franchisees 3ho are ter(inated 3ill not be

eligible to bid for an% franchisee $ for an% territor% for the ne-t t3o %ears.Circle;SSA (a% +se loo5,after arrange(ent in these 9acant territories.

9iii. (e-demarcation o territoryBS! reser9es the right to redefine territories incases 3here franchisee has not (et the perfor(ance criteria @defined abo9e inthis polic% for a period of (ore than three (onths.

i-. ConidentialityAll data collected or generated d+ring the re9ie3 process atSSA or Circle le9el sho+ld be treated as confidential. t can be disc+ssed 3ithfranchisees ho3e9er no data related to other franchisees sho+ld be gi9en to an%franchisee. Access to this data sho+ld also be restricted to onl% co(petent

a+thorities as decided b% Circle ead or SSA ead.

Page 16of 3


19/37


Section Discounts , Commissions 0or %ranchisee

i. )otal co((ission ; disco+nt pa%able to franchisee channel@Franchisee? R+ral 'istrib+tors and Retailers on 9ario+s prod+cts 3ill beanno+nced b% BS! on introd+ction of ne3 prod+ct and (a% be re9ised ordiscontin+e b% BS! as per the changes in b+siness en9iron(ent.

ii. )he franchisee co((ission and disco+nt is being anno+nced as and

3hen ne3 prod+cts are being la+nched b% Prod+ct and Pricing +nit ofCons+(er 7obilit%.

iii. For Cons+(er fi-ed Access prod+cts the e-istingCo((ission;'isco+nt shall be applicable and for cons+(er (obilit% latestcirc+lars of Prod+ct 2 Pricing cell of C7 cell (a% be referred.

i9. Franchisee (+st pass on part of the disco+nt;co((ission to retailers;R's as described in Anne-+re,$. )hese fig+res are the (ini(+( share3hich franchisee (+st pass on to retailers; R's.

a. Lhere9er retailers are being ser9ed thro+gh =RIRA! 'S)RBI)R>?franchisee has to pass on at least 0 of the franchiseeco((ission;disco+nt to r+ral distrib+tor o+t of 3hich


20/37


b$ &ction against Cross-selling: f franchisee fo+nd to be in9ol9ed in crossselling:

@i 1stoffence e-planation of the franchisee to be called gi9ing ten da%s ti(eto s+b(it response. C,)PIP n+(ber of all s+ch retailer to bedisconnected +nder inti(ation to franchisee? if either no repl% is recei9ed

or the e-planation of franchisee is not satisfactor%.@ii #ndoffence:, $-planation of the franchisee to be called gi9ing ten da%s

ti(e to s+b(it response. C,)PIP n+(bers of all s+ch retailers to bedisconnected +nder inti(ation to franchisee? if either no repl% is recei9edor the e-planation of franchisee is not satisfactor% and also their balanceis to be forfeited.

@iii /rd offence and be%ond:,C,)PIP n+(bers of all s+ch retailers to bedisconnected +nder inti(ation to franchisee? and their balance 3ill beforfeited K Rs./000;, penalt% per retailer.

P$ /eneral 3erms , Conditionsa. Lhene9er an% ne3 prod+cts are la+nched? a separate co((+nication 3ill

follo3 on the applicable disco+nt;co((ission rate.b. Franchisees (a% be gi9en right to 9ie3 Franchisee portion of Sancharsoft?

3hich the% are s+pposed to 9ie3 periodicall% and ta5e necessar% actions.c. BS! reser9es the right to change the ter(s of trade fro( ti(e to ti(e 3ith

notice period of /0 da%s.d. BS! reser9es the right to 3ithhold or dela% the disco+nt;co((ission for the

Franchisees in case of an% pending disp+tes in (atters relating to acti9ationsor cancellations.

e. n case of disp+te arising bet3een the Franchisee and BS!? the sa(e shallbe ad+dicated b% the Circle ead or an% official appointed b% the Circleead.

f. )he co(pan%Es decision 3ill be final on all (atters relating to the b+sinessand 3ill be binding on the Franchisee.g. t 3ill be the Co(pan%Es endea9or to (a5e the pa%(ent to the Franchisees as

per the sched+le? ho3e9er this (a% stretch be%ond the sched+led ti(e onl% incase of dela%s in getting clai(s fro( the Franchisees or in case of incorrectclai(s.

h. )he pa%(ent to the Franchisees 3ill be (ade thro+gh a che*+e ; $CS afterded+cting applicable ta-es.

i. All Franchisees 3ill report to SSA ead thro+gh the nodal officer appointed b%hi(.

. All ta-es present 2 F+t+re additional? ta-es ;!essees; d+ties etc th+s (a% bele9ied b% the go9t. ; !ocal a+thorities etc. 3ill be to the franchisee a;c.

5. )he Franchisee shall co(pl% 3ith all applicable la3s? b%e !a3s r+les?reg+lations? orders? directions notifications etc of the Go9t.; Co+rt;)rib+nalsand shall also co(pl% 3ith all directions iss+ed b% BS! and pro9ide BS!3ith all infor(ation and cooperation that BS! (a% reasonabl% re*+ire fro(ti(e to ti(e.

l. )he franchisee has to f+ll% cooperate 3ith BS! to in9estigate an% co(plaintfro( the p+blic? retailers or BS!Es sales tea(s.

(. Franchisee shall be liable for all pa%(ents of 3ages? Salar% etc to itse(plo%ees 2 shall co(pl% 3ith all stat+tor% la3s? r+les? relating toe(plo%(ent? 3ages? PF? '? act etc.

Page 20of 3


21/37


n. )he Franchisee shall f+ll% inde(nif%? depend 2 hold BS! har(less fro( andagainst all clai(s? !iabilit%? !osses or da(ages reco9eries? proceedings?actions? 6+dg(ents costs? charges 2 e-penses 3hich (a% be (ade orbro+ght or co((ences against BS! or 3hich BS! (a% or (a% ha9e tobear? pa% or s+ffer directl% or indirectl% in connection 3ith an% breachFranchiseeEs agree(ent b% franchisee or its agents? e(plo%ees? offices.

o. BS! Shall not be liable for an% act of disco+nt;co((ission or o(ission of

an% third part%.p. '+ring the c+rrenc% of agree(ent? franchisee 3ill not be per(itted to pro9ide

ser9ices to an% other teleco( ser9ice pro9ider.*. )hat franchisee shall displa% pro(inentl% the infor(ation prescribed b% BS!

fro( ti(e to ti(e 2 3ill displa% a signboard? of siHe decided b% BS!?indicating the na(e 2 logo;Brand na(e of BS! as (a% be prescribed b%BS!.

r. )hat franchisee shall pa% all d+es 2 o+tstanding to BS! d+ring the c+rrenc%of assess(ent or on ter(ination of the agree(ent as the case (a%? e9en ifan% disp+te is pending bet3een the franchisee 2 BS!. )he sa(e shall bead+stable b% the Circle ead or official appointed b% Circle ead.

s. )he franchisee 3ill ha9e to abide b% the polic% r+les? reg+lations 2 instr+ctions

of BS! as re9ised;(odified fro( ti(e to ti(e? 3itho+t an% prior notice to thefranchisee in respect of all (atters incl+ding sec+rit% deposit ; PBG?disco+nt;co((ission pa%able to the franchisee etc.

t. Franchisee (+st enter list of (aterial recei9ed? sold and a9ailable 3ith hi(and all his retailers on a dail% basis thro+gh BS! Dspecified ) s%ste(.

+. PBG shall be forfeited if ne3l% appointed franchisee does not start b+siness3ithin 0 da%s.

9. Franchisee 3ho ha9e not (igrated or s+rrender franchisee,ship? the cost ofthe prod+cts a9ailable 3ith hi( and losses to BS! shall be reco9ered fro(PBG.

3. Franchisee (a% s+rrender his franchisee ship b% gi9ing 0 da%s notice? S+ch

Franchisee shall not be eligible for participating in the $o process for ne-t t3o%ears in circle-. PBG shall be ref+nded after ad+sting d+es ; clai(s if the franchisee has

s+rrendered his territor% 3ith (+t+al consents.%. n case of ter(ination of franchisee,ship on perfor(ance based the penalt%

and other d+es shall be reco9ered fro( PBG and rest be ref+nded bac5.

Page 21of 3


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e-Distributor Policy 2012

BS! is ser9ing c+sto(ers thro+gh Franchisees; R+ral 'istrib+tors; 'SAs; Retailers inthe defined geographical area. )o ser9e the c+sto(ers thro+gh nternet and or thro+gh5ios5s? A)7s and other retail chains? there is a need to appoint Circle !e9el ; nternetption franchisees and 3ill be 5no3n as e,'istrib+tors$

Sco.e o :or


23/37


Applicants 3ill be re*+ired to s+ppl% an e-perience certificate ; r+nningcontract fro( the concerned agenc% to 3hich the applicant has beenpro9iding ; is pro9iding the said ser9ices.

'$ Processing %eeA non ref+ndable application processing fee of Rs."?000;, shallbe charged fro( the applicants.

$ PB/ @Perfor(ance Ban5 G+arantee to the t+ne of follo3ing a(o+nts shall also be

ta5en before agree(ent:i. Circle !e9el e,'istrib+tor , Rs.1 !a5hs ; Circleii. nternet ption @each Qone , Rs.# !a5hs ; Qone

Perfor(ance Ban5 G+arantee shall be forfeited if a fir( does not start theb+siness 3ithin (onths of signing of agree(ent or fails to carr% o+t the(ini(+( b+siness of / crore of RC sale d+ring the %ear.

$ &rea o o.eratione,'istrib+tors sho+ld be one or co(bination of belo3:a nternet ption All 4 Qones @orth? So+th? $ast 2 Lest

e,'istrib+tor ha9e to sign agree(ent in all fo+r Hones.

)he e,'istrib+tor shall sell 9al+es thro+gh nternet; (obile access

across the Hones. )he% cannot distrib+te the prod+ct b% an% other (eans.

b Retailer Based : $-cl+si9e Retail et3or5 @other than general retailers Circle !e9el e,'istrib+tor

$ Retailers of the e,'istrib+tors (a% be gi9en free S7s and the S7S sent to theshort code of e,'istrib+tor shall be (ade free. o3e9er? no other concessional tariffor freebies be gi9en.

6$ Discount A Commission&" of Pri(ar% FranchiseeEs 'isco+nt ; Co((ission?s+bect to (a-i(+( 4.".

7$ Sales argeti. Circle !e9el e,'istrib+tor Rs.#" !a5hs ; 7onth ; Circleii. nternet ption @each Hone Rs.#" !a5hs ; 7onth

10$ (oll out Plan)he penalt% cla+se? as specified in cla+se 11 on acco+nt of non,co(pliance totargets as specified in Cla+se abo9e 3ill co(e into effect fro( the start of thefo+rth (onth fro( the date of signing of the agree(ent.

11$ Penalty. n non,co(pliance to the targets as specified at cla+se abo9e? a penalt% 3ill

be i(posed on the e,'istrib+tor. )he details and (ethodolog% of i(posing thepenalt% is defined belo3:a. )he i(position of penalt% 3ill co(e into force fro( the start of the fo+rth

(onth fro( the date of signing of the agree(ent.b. )he penalt% 3ill be calc+lated as a percentage of the short fall in the

achie9e(ent of target. )hese percentages co+ld be as +nder:A. 0.1 penalt%: on short achie9e(ent of target fro( 4 to (onths.B. 0.# penalt%: on short achie9e(ent of target fro( < (onths on3ard.ote: CG7s (a% rela- the abo9e penalt% for e-cl+si9e channels of e,

'istrib+tors in case of single tie,+p. e.g. ban5; rganiHed Retail Chain;Ser9ice Centre Agents @SCAs etc.

. Cross Sellingf e,'istrib+tor fo+nd in9ol9ed in cross selling? shall be Blac5,listed.

Page 23of 3


24/37


12$ ermination@1 )he e,'istrib+tors (a% be ter(inated if not fo+nd 3or5ing for si-consec+ti9e (onths. PBG shall be ret+rned? once the d+es in relation to pendingpenalties are cleared. or @# fails to carr% o+t the (ini(+( b+siness of / crore ofRC sale d+ring the %ear.

13$ "5tension

e,'istrib+tor shall re*+est to the concerned Circle; nodal Circle for e-tension of

its contract 3ell in ad9ance fro( the end date of its contract. )he agree(ent shall be e-tended for 3illing e,'istrib+tors on %ear,to,%ear basis

for a period of t3o %ears b% concerned Circle; nodal Circle? s+bect to conditionthat

. Achie9e(ent of the sales targets d+ring pre9io+s %ear 2. e,'istrib+tor has paid applicable penalt% in f+ll for short achie9e(ents.

1'$ "5it clausef e,distrib+tor does not 3ant to 3or5? he (a% gi9e 0 da%s notice in ad9ance ande-it. n s+ch cases? the PBG shall onl% be ret+rned? once the d+es in relation topending penalties are cleared.

1$ Migration:

$-isting 3illing e,P franchisees 3ith a circle t+rno9er;b+siness of Rs."0 lacs

allo3ed to (igrate for circle option and for +pgrading to All ndia nternetoption needs to appl% fresh.

PBG (a% be +pdated accordingl% and ne3 agree(ent 3ill be signed.

1$ Minimum Purchase n order to a9oid fre*+ent and s(all *+antit% p+rchasere*+isitions fro( e,'istrib+tors? a (ini(+( order *+antit% (a% be specified foreach t%pe of e,'istrib+tor.e,distrib+tor 3ill b+% at a ti(e (ini(+( p+rchase of:

i. Circle !e9el e,'istrib+tor Rs.1 la5h ;Circleii. nternet ption @each Hone Rs.1 !a5h;Qone

t is preferable that all the transactions are carried o+t thro+gh R)GS.

1$ (ole o Nodal Circle:odal Circles 3ill be o9erall responsible for i(ple(entation of the polic% and itss+ccess. )he 3or5 of apportioning the re9en+e as per recharge b% e,distrib+tor@nternet ption and transfer of the f+nd to concern Circles 3ill be responsibilit% ofodal Circle.

ote: n case apportion(ent of re9en+e is not possible then re9en+e 3ill beapportioned a(ong concern circles in ratio of recharge re9en+e of thecircles.

odal Circle for Qone 3ill be concern circle in the Hone as belo3:i. %derabad @Andhra Pradesh )eleco( Circle So+th Qoneii. Chandigarh @P+nab )eleco( Circle orth Qoneiii. P+ne @7aharashtra )eleco( Circle Lest Qonei9. 8ol5ata @Lest Bengal )eleco( Circle $ast Qone

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DS& Policy 2012

1$ Sco.e o the or

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