BharatNet Project Gets Cabinet Approval for Rs. 19,041-Crore Viability Gap, to Roll Out in 16 States

Around 6 lakh villages in the country will be connected with BharatNet broadband in 1,000 days.

Advertisement
By Press Trust of India | Updated: 1 July 2021 14:01 IST
Highlights
  • The 16 states are Kerala, Karnataka, Uttar Pradesh, Assam, more
  • PM Modi had announced that 6 lakh villages to be connected in 1000 days
  • BharatNet approved with PPP model at a total expense of Rs 29,430 crores

BharatNet to cover all inhabited villages in the remaining states and union territories soon

Photo Credit: Pexels/ Brett Sayles

The Cabinet on Wednesday approved public private partnership mode for the rollout of BharatNet project for broadband services in villages in 16 states with viability gap funding of Rs 19,041 crore, Telecom Minister Ravi Shankar Prasad said.

Prasad said the decision to involve private players was taken after Prime Minister Narendra Modi announced on August 15, 2020 that around 6 lakh villages in the country will be connected with broadband in 1,000 days.

Advertisement

"The Cabinet has in-principle approved implementation of BharatNet in 16 states in a public private partnership model with total expense of Rs. 29,430 crore. The government of India will only spend the viability gap fund of Rs. 19,041 crore," Prasad said while sharing details of the Cabinet decision.

The 16 states are — Kerala, Karnataka, Rajasthan, Himachal Pradesh, Punjab, Haryana, Uttar Pradesh, Madhya Pradesh, West Bengal, Assam, Meghalaya, Manipur, Mizoram, Tripura, Nagaland and Arunachal Pradesh.

Advertisement

Prasad said till date, 1.56 lakh out of the 2.5 lakh village panchayats have been connected with broadband.

"The PPP model shall be executed in 16 states of India in 3.61 lakh villages," Prasad said.

Advertisement

An official statement said the Cabinet also accorded in-principle approval for extending BharatNet to cover all inhabited villages in the remaining states and union territories.

"The Department of Telecommunication will separately work out the modalities for these (remaining) States/UTs," the statement said.

Advertisement

The minister said there will be an agreement of 30 years with private players and the entire project will be divided into nine packages.

"No player will get more than four packages," Prasad said.

He said that one package corresponds to a telecom circle area.

"If you calculate the opex and capex of 30 years, then it comes to around Rs 95,000 crore if the government of India had executed it. Compared to this, the government is setting up this architecture for viability gap funding of Rs. 19,041 crore," Prasad said.

The viability gap funding is provided in case an entity faces loss for executing a project. The gap between cost of running a project and actual revenue realisation is provided through viability gap funding.

The minister further said that access to broadband in rural areas will improve e-governance, tele-medicine, online education and develop entrepreneurship.

Earlier this week, Finance Minister Nirmala Sitharaman had said the additional Rs 19,041 crore fund increases the total outlay for BharatNet project to Rs. 61,109 crore.

Sitharaman had said Rs. 42,068 crore has been already utilised for reaching 1,56,223 gram panchayats that are now ready for broadband services as of May 31.


We discuss the return of PUBG Mobile, sorry, Battlegrounds Mobile India on Orbital, the Gadgets 360 podcast. Orbital is available on Apple Podcasts, Google Podcasts, Spotify, Amazon Music and wherever you get your podcasts.
Affiliate links may be automatically generated - see our ethics statement for details.
 

Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.

Advertisement

Related Stories

Popular Mobile Brands
  1. Vivo Y31s Launched in Malaysia With These Features
  2. WWDC 2026: Apple Unveils Siri AI With Major Apple Intelligence Upgrades
  3. Samsung Galaxy Watch Ultra 2, Watch 9 Visit China's 3C Ahead of Launch
  4. Redmi Turbo 5 Confirmed to Launch in India With This Rear Camera Setup
  5. OnePlus Could Launch a New Budget Smartphone Lineup in India Soon
  6. iQOO Neo 12 Tipped to Offer Major Display Upgrade Over Predecessor
  7. WWDC 2026: Apple Launches macOS 27 Golden Gate With Major Siri Redesign
  8. Vivo X300 FE, iQOO 15R and More Discounted During Amazon Mega Deal Days Sale
  9. Vivo V70 Lite 5G Silently Launched in Select Markets With These Features
  10. Apple Unveils iOS 27 With Revamped Siri and Liquid Glass Improvements
  1. WWDC 2026: Apple Unveils Siri AI With Major Apple Intelligence Upgrades
  2. Apple Unveils iOS 27 at WWDC 2026: Revamped Siri AI App, Faster Performance and Liquid Glass Upgrades
  3. WWDC 2026: Apple Launches macOS 27 Golden Gate With Major Siri Redesign and New AI Tools
  4. Astrophotographer Captures Giant Human-Shaped Solar Prominence
  5. Samsung Galaxy S26 FE Said to Ditch Matte Finish for a Glossy Rear Panel
  6. OnePlus N Series Tipped to Launch in India Next Month, Could Be More Affordable Than the OnePlus Nord CE 6 Lite
  7. Vivo Y31s 5G Launched With Snapdragon 4 Gen 2 Chip, 6,500mAh Battery: Price, Specifications
  8. Chinese Court Classifies Bitcoin as Property in Case Involving 107 BTC Theft
  9. Resident Evil Veronica Revealed at Summer Game Fest; Launch Set for 2027
  10. Karuppu OTT Release: When and Where to Watch Suriya’s Fantasy Action Drama Online
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2026. All rights reserved.