Rs 80,000 crore 'Digital Bharat Nidhi' fund to boost urban telecom services

To secure the funds, the projects have to meet certain criteria, such as improving telecom service affordability and security

The Rs 80,000 crore Digital Bharat Nidhi will now fund telecommunication services in urban areas, the central government said on Monday. 

For the funds, the projects have to meet certain criteria, such as improving telecom service affordability and security. The funding will support mobile and broadband services, as well as telecommunication equipment, an official press release issued by the Centre on Monday read. The scheme, under the Telecommunications Act 2023, was notified on Saturday.

"These (the rules) 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.

Union Minister of Communications Jyotiraditya M Scindia in a comment on X (formerly Twitter) said that the rules would ensure equal access to telecom services and in turn, strengthen India's mission of becoming ‘Viksit Bharat’ by 2047.

As of the end of March 2024, the government had a balance of Rs 79,638 crore in this fund. Previously known as the Universal Services Obligation Fund (USOF), the Digital Bharat Nidhi used to focus only on rural and remote networks.

"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.

Under the Telecommunications Act 2023, the government has expanded the fund's scope. This expansion aims to establish relevant benchmarks, promote startups, and give an edge to indigenous technology among other objectives.

Projects funded under Digital Bharat Nidhi must operate and maintain telecommunication networks on an open and non-discriminatory basis, the press release stated.