Digital Bharat Nidhi to fund provisioning of telecom services in urban areas now

The Rs 80,000 crore Digital Bharat Nidhi will now support the provisioning of telecommunication services in urban areas with additional benchmarks, such as making such services affordable and enhancing their security, an official statement said on Monday.

The scheme under the Telecommunications Act 2023 was notified last week.

"The schemes and projects funded under the Digital Bharat Nidhi need to meet one or more of the criteria stipulated in the rules.

"These include projects for the provision of telecommunication services, including mobile and broadband services and telecommunication equipment required for delivery of telecommunication services, and enhancing telecom security; improving access and affordability of telecom services... in underserved rural, remote and urban areas," the statement said.

According to official data, the government had a balance of Rs 79,638 crore in the fiscal year ended March 31, 2024.

The Digital Bharat Nidhi was formerly known as the Universal Services Obligation Fund (USOF), which earlier supported the rollout of networks in rural and remote areas only.

"The USOF created under the Indian Telegraph Act, 1885 has now been rechristened as Digital Bharat Nidhi ...it now addresses new areas which may require support from Digital Bharat Nidhi in changing technological times," the statement said.

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Under the Telecommunications Act 2023, the government has expanded the scope of the fund to support innovation, research and development, commercialisation of indigenous technology development, establishing relevant standards to meet national requirements and their standardisation international standardisation bodies, encouraging start-ups, and promoting sustainable and green technologies in the telecommunications sector.

"Marching towards building a digitally connected Bharat and an #Atmanirbhar telecom sector DoT_India is proud to share that the first rules of The Telecom Act 2023, 'Digital Bharat Nidhi' are now in effect.

"This reflects our commitment to ensure equal access to telecom services and in turn, strengthen India's mission of becoming Viksit Bharat @ 2047," Telecom Minister Jyotiraditya Scindia said on a social media platform.

Projects funded under Digital Bharat Nidhi (DBN) for establishing, operating, maintaining or expanding a telecommunication network, will have to share and make available such telecommunication networks and services on an open and non-discriminatory basis.