Digital Bharat Nidhi signed an agreement on 10 September 2026 at Sanchar Bhawan in New Delhi to roll out the Amended BharatNet Program in Jharkhand under the state led model. The pact brings together the Jharkhand government, Jharkhand Digital Infrastructure Corporation Ltd, Bharat Sanchar Nigam Ltd and Jharkhand Communication Network Ltd to connect 4,395 gram panchayats through optical fibre. With central support of ₹1,684 crore, it aims to take reliable broadband beyond panchayat offices to villages and homes on demand.
What Is the BharatNet Project?
The BharatNet project is one of the largest rural broadband projects in the world. It aims to provide high speed broadband to every gram panchayat in India using optical fibre cable, which carries internet signals as light through thin glass strands.
The project was approved by the Union Cabinet on 25 October 2011 as the National Optical Fibre Network (NOFN). It was renamed BharatNet in 2015 and linked to the Digital India programme. It works under the Department of Telecommunications, which is part of the Ministry of Communications.
BharatNet is designed as a middle mile network. This means it creates the main broadband highway from the block headquarters to the gram panchayat. Mobile companies, Internet Service Providers (ISPs), cable operators and government agencies can then use this highway on equal terms to deliver services such as e governance, online education, telemedicine and digital payments.
The project is executed by Bharat Broadband Network Limited (BBNL), a special purpose company set up on 25 February 2012. Phase one connected more than one lakh gram panchayats by December 2017. Phase two used a mix of fibre, radio and satellite and worked through state led, central public sector and private led models. Together, the first two phases connected about 2.15 lakh of the targeted 2.22 lakh gram panchayats and laid nearly 7 lakh km of fibre.
What Is the Amended BharatNet Program?
The Amended BharatNet Program (ABP) is the upgraded third stage of BharatNet. The Union Cabinet approved it on 4 August 2023 with a total national outlay of ₹1,39,579 crore. Its goal is to repair, upgrade and expand the earlier network and to make it work reliably for many years.
The program has three clear targets. First, it will provide fibre connectivity to 2.64 lakh gram panchayats in ring topology. Second, it will extend fibre to about 3.8 lakh non gram panchayat villages on demand, wherever a village asks for connections. Third, it will support 1.5 crore Fibre to the Home (FTTH) connections, which means a fibre line that directly reaches a house, school, health centre or office.
The biggest change is in design and maintenance. Earlier phases mainly focused on laying cable. The amended program follows a design, build, operate and maintain model with 10 years of responsibility, which includes about three years of construction and seven years of operation and maintenance. Bharat Sanchar Nigam Limited (BSNL), the central public sector telecom company, acts as the single Project Management Agency for operation and maintenance. The network will use Internet Protocol Multi Protocol Label Switching (IP-MPLS) routers at blocks and panchayats for better traffic control, a Remote Fibre Monitoring System to detect cuts quickly, power backup, and dedicated Network Operation Centres at state and national levels for round the clock monitoring.
Jharkhand Agreement: Scope, Cost and Implementing Agencies
The Jharkhand agreement was signed on 10 September 2026 at Sanchar Bhawan in New Delhi. It was signed between Digital Bharat Nidhi (DBN), the Jharkhand government, Jharkhand Digital Infrastructure Corporation Limited (JDICL), BSNL and Jharkhand Communication Network Limited (JCNL). On behalf of the central side, the Deputy Director General for ABP Implementation, Dinesh Kumar Garg, signed the pact in the presence of DBN Administrator Shyamal Mishra. On behalf of the state, Pooja Singhal, Secretary of the Department of Information Technology and e Governance, signed the pact.
The program in Jharkhand will follow the state led model. In this model, the state government implements the work through its own agency with central funding and technical support, instead of the work being done directly by the Centre in that state. At the national level, the amended program is being rolled out in two ways. BSNL leads implementation in 18 packages covering 21 states and five union territories, while seven states, including Jharkhand and Gujarat, implement it through the state led route.
The scope and funding for Jharkhand are fixed and specific. The Centre has provided ₹1,684 crore for the state. The work covers 4,395 gram panchayats, which includes upgradation of 4,387 gram panchayats from linear to ring design and connection of 8 newly created gram panchayats. In addition, 26,777 villages will be given connectivity on demand to strengthen last mile access. The initiative is expected to support more than four lakh rural home fibre connections with subsidy support from the Centre.
Roles of JDICL, BSNL, JCNL and Digital Bharat Nidhi
The project in Jharkhand will be implemented through JDICL, a new special purpose company incorporated on 21 July 2026 and registered with the Registrar of Companies in Ranchi. As the state implementing agency, it will get the network built, upgraded and maintained in the state.
BSNL will support execution and act as the project management agency for operation and maintenance based on service quality standards. JCNL, which was set up in January 2017 as a Jharkhand government company for communication and information technology services, will assist in state level execution, including earlier experience with last mile Wi Fi and broadband services at panchayat level. Digital Bharat Nidhi, under the Department of Telecommunications, will provide funding, sign the implementation agreement and monitor progress. This division of work is meant to combine central funds and standards with local execution and right of way support from the state.
How BharatNet Is Funded: From USOF to Digital Bharat Nidhi
The BharatNet project is funded through Digital Bharat Nidhi. Digital Bharat Nidhi is a central fund managed by the Department of Telecommunications to improve telecom access in rural, remote and underserved areas.
Digital Bharat Nidhi replaced the earlier Universal Service Obligation Fund (USOF). USOF was created with effect from 1 April 2002 and given legal backing through the Indian Telegraph (Amendment) Act, 2003. It collected a Universal Access Levy of 5 percent of the adjusted gross revenue of telecom companies. Under the Telecommunications Act, 2023, which received presidential assent on 24 December 2023, USOF was renamed as Digital Bharat Nidhi. The rules to run the fund, called the Telecommunications (Digital Bharat Nidhi) Rules, 2024, were notified in August 2024.
The scope of the new fund is wider than the old fund. While USOF focused mainly on basic telecom access in rural and remote areas, Digital Bharat Nidhi also supports broadband expansion, research and development in telecom technology, pilot projects, promotion of indigenous technology and start ups, and targeted access for groups such as women, persons with disabilities and weaker sections. Money collected as levy is first credited to the Consolidated Fund of India and then transferred to Digital Bharat Nidhi from time to time. An Administrator appointed by the Centre selects implementing agencies through bidding or applications and releases funds as full funding, partial funding, co funding or viability support.
| Feature | Universal Service Obligation Fund | Digital Bharat Nidhi |
|---|---|---|
| Legal basis | Indian Telegraph Act, as amended in 2003 and 2006 | Telecommunications Act, 2023 |
| Start | Effective from 1 April 2002 | Renamed and reshaped in 2024 |
| Main source | 5 percent levy on telecom companies | Same levy, routed through Consolidated Fund of India |
| Focus | Basic telecom access in rural and remote areas | Broadband plus research, pilots, indigenous technology and urban underserved areas |
| Use for BharatNet | Funded Phase one and Phase two | Funds Amended BharatNet Program, FTTH and Udyami support |
Why Ring Topology and Last Mile Connectivity Matter
Ring topology means the fibre cable forms a closed loop instead of a single straight line. In the earlier linear design, a single cut could stop internet for the whole panchayat beyond the cut. In a ring, data can travel from either side of the loop, so traffic shifts to the other path if one side breaks. For Jharkhand, upgrading 4,387 gram panchayats from linear to ring design is therefore meant to improve daily uptime and service quality, with a national target of more than 98 percent uptime and a minimum 25 Mbps download speed for FTTH users.
The middle mile alone does not bring internet to homes. The last mile is the final link from the panchayat point to the house, school or clinic. The amended program handles this in two ways. First, a small Mini Optical Line Terminal, which is a device that splits one fibre signal into many home connections, is placed at each gram panchayat. Fibre is then extended to nearby non gram panchayat villages on demand, with a central subsidy of about ₹1.6 lakh per non gram panchayat village reported for such extension.
Second, the BharatNet Udyami model uses local entrepreneurs to connect homes. A BharatNet Udyami can be a village level entrepreneur, an ISP, a self help group or a local cable operator. The Udyami installs the Optical Network Terminal, which is the small box fixed inside a home to receive fibre internet, lays and maintains the short fibre drop of a few hundred metres, and looks after the connection. The Udyami gets capital and operating support, including a one time incentive for each new connection and a share of the monthly charges, with higher support in low population villages. Customers do not pay installation charges under the fund supported plan and pay only the monthly plan, with rural starter plans reported from around ₹259 to ₹399 per month. The Centre signed a utilisation pact with BSNL on 9 April 2025 for 1.5 crore FTTH connections over five years through this model, of which more than 12.5 lakh connections have already been provided across states.
Significance for Jharkhand and Rural Digital Services
Jharkhand has difficult terrain, forested pockets, mining belts and many scattered habitations where private telecom investment is slow. Reliable panchayat broadband can reduce this gap by carrying government and commercial services on the same fibre. Once the ring network and village links are ready, the same infrastructure can be used for e governance certificates, school and college classes, health consultations, digital payments, agricultural advice and small business sales.
The agreement also matters for governance. Dark fibre, which is unused fibre capacity leased to other operators, is priced at about ₹3,000 per fibre per km per year with outcome linked discounts. This allows any licensed operator to hire capacity without laying fresh cable to every village. Continuous monitoring through state and central operation centres, live dashboards and field attendance tracking is meant to keep construction quality and repair times under watch.
For rural households, the practical benefit will depend on quick last mile rollout. The plan for more than four lakh home fibre connections in Jharkhand, along with on demand coverage of 26,777 villages, will test whether the Udyami entrepreneurship model can create both connectivity and local jobs. If the 10 year maintenance promise holds, Jharkhand will move from one time cable laying to assured service delivery, which is the central aim of the amended program.
Key Takeaways
- The Amended BharatNet Program agreement for Jharkhand was signed on 10 September 2026 at Sanchar Bhawan, New Delhi under the state led model.
- The Jharkhand scope covers 4,395 gram panchayats, including upgrade of 4,387 panchayats to ring topology and 8 new panchayats, plus on demand links to 26,777 villages.
- The Centre has provided ₹1,684 crore for Jharkhand and expects more than four lakh rural FTTH connections with subsidy support.
- The Amended BharatNet Program was approved on 4 August 2023 with an outlay of ₹1,39,579 crore for 2.64 lakh gram panchayats and 1.5 crore FTTH connections.
- Digital Bharat Nidhi, created under the Telecommunications Act, 2023, replaced USOF and is managed by the Department of Telecommunications.
