India approves Rs 42,068 crore Capex for BharatNet broadband project

Top broadband operators India May 2017
India Government has approved the second phase of BharatNet broadband program to connect all 250,000 gram panchayats in the country, extending the target deadline to March 2019.

The estimated capital expenditure (Capex) will be Rs 42,068 crore for implementing BharatNet, which will be funded from the government’s Universal Service Obligation Fund (USOF).

Out of this amount, Rs 11,148 crore is for providing connectivity to one lakh gram panchayats in Phase 1, and Rs 18,792 crore is for providing connectivity to the remaining 1.5 lakh gram panchayats in Phase 2.
India broadband market in 2016
The balance amount will cover costs of last mile connectivity architecture, operation and maintenance, and replacement of BSNL’s poor quality fibre being used in the project between block to gram panchayat, with new fibre.

Under the modified strategy, implementation of the project is open for states, public sector as well as private companies.

The government aims to provide minimum 100 Mbps broadband connectivity to all gram panchayats by using an optimal mix of underground fibre, aerial fibre, radio and satellite media.

“The modified implementation strategy of BharatNet project will enable effective and faster implementation of various mission mode e-governance projects of central government and state governments,” the source said.

Economic benefits from the project are expected through additional employment, e-education, e-health, e-agriculture, and reduction in migration of rural population to urban areas.