The scheme will extend broadband connectivity to panchayats
The Union Cabinet on Tuesday approved a scheme for the creation of a ‘National Optical Fibre Network' (NOFN) for providing broadband connectivity to panchayats at an initial cost of over Rs.20,000 crore, which will help in offering governance, banking and health services online.
The project aims to extend the existing optical fibre network, which is available up to district and block levels, to the gram panchayat level, by utilising Rs.20,000 crore from the Universal Service Obligation (USO) Fund. A similar amount of investment is likely to be made by the private sector complementing the NOFN infrastructure while providing services to individual users. As per a study conducted by the World Bank, with every 10 per cent increase in broadband penetration, there is a 1.4 per cent increase in GDP growth.
“The Rs.20,000-crore project is likely to be completed in the next two years…the NOFN will also facilitate implementation of various e-governance initiatives such as e-health, e-banking and e-education, thereby facilitating inclusive growth,” Telecom Secretary R. Chandrashekhar told journalists here.
Initially, the broadband project would be executed by the state-owned Bharat Sanchar Nigam Limited (BSNL) and other institutions such as RailTel, Power Grid and the Gas Authority of India. For the implementation and execution, the Cabinet has approved the formation of a special purpose vehicle with equity from the Government of India, Mr. Chandrashekhar said.
The proposed NOFN will enable effective and faster implementation of various mission mode e-governance projects amounting to around Rs.50,000 crore initiated by the Department of Information Technology as well as the delivery of a whole range of electronic services in the above areas by the private sector those in rural areas.





This is absolutely an excellent project which the Indian Govt. has taken
upon and should be executed at the earliest convenience. Since the news
for such project is published, we need to know what is the targetted
period to commence and complete such project.
While the expansion of fiber optic network to villages by the government is a good idea, the expense of 20,000 crores of rupees is too much to ask for. In most countries this type of expansion of communication net work is undertaken by the private sector, while the India government spends enormous amount of money in the name of broadband connectivity. What the people need more than the internet connectivity are better roads, infra structure, better schools, improvement in rail transportation, better management of railway level crossings, security, crime prevention, speedy legal system, drinking water supply, waste management, counter terrorrism, stop all bandhs and Naxalite attacks. The communications, fiber optic network and broadband should be left to the private sector. The government should stop the practice of over extending its activity into every aspect of life and development while the basic ameneties of the public remain poor especially that of the poor people.
the above project is an excellent step of connectivity between city people and village educated and the project execution over a period would good fillip to our economy(both PSUs & Private).We hope that the Govt ( Dept of Telecom)would speed up the execution with adequate funds for this from the Planning Com,etc
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