The Department of Telecommunications (DoT) plans to move a cabinet note seeking approval for transferring mobile network assets created in the naxal-affected areas to Bharat Sanchar Nigam Limited (BSNL).

The move is aimed at ensuring mobile coverage in the naxal-affected areas even after the Universal Services Obligation (USO) Fund stops supporting the expansion of telecom network in these areas, post-2019.

In 2013, the government had mandated BSNL to establish mobile connectivity in 2,199 naxal-affected regions in Andhra Pradesh, Chhattisgarh, Jharkhand, Odisha, Bihar, Maharashtra, Madhya Pradesh, West Bengal and Uttar Pradesh.

The Rs 30.46 billion project is subsidised by the USO Fund. Following the transfer of assets, the operator will eligible for Cenvat credit and reduced sales tax outflows. Actual transfer of ownership to BSNL, however, is likely to take place in late-2019, after the USO Fund stops funding the project.