The Digital Bharat Nidhi (DBN) under the Department of Telecommunications (DoT) has signed an addendum with the Gujarat government, Gujarat Fibre Grid Network Limited (GFGNL) and Bharat Sanchar Nigam Limited (BSNL) to implement the Amended BharatNet Programme (ABP) across Gujarat. The agreement, signed at Sanchar Bhawan in New Delhi, clears the way for a ₹5,629 crore investment to upgrade rural broadband infrastructure in the state. The programme will cover 14,287 Gram Panchayats and extend on-demand connectivity to 3,895 villages, marking one of the biggest rural digital infrastructure pushes in Gujarat.
What Is the Amended BharatNet Programme?
The Amended BharatNet Programme (ABP) is the revamped version of BharatNet, the world’s largest rural broadband connectivity project. BharatNet was originally launched in October 2011 as the National Optical Fibre Network (NOFN) and was renamed BharatNet in 2015 under the Digital India initiative. The project is implemented by Bharat Broadband Network Limited (BBNL), a special purpose vehicle incorporated in February 2012.
The Union Cabinet approved the Amended BharatNet Programme on 4 August 2023 with a total outlay of ₹1,39,579 crore (approximately $16.9 billion). The programme marks a major shift from the earlier approach of merely laying optical fibre to a service-oriented, professionally managed model focused on network resilience, high uptime, and last-mile connectivity.
Key Features of ABP
| Feature | Detail |
|---|---|
| Network Architecture | Block to Gram Panchayat connectivity in ring topology (replacing linear topology) |
| Technology | IP-MPLS network with routers at Block and GP levels |
| Village Connectivity | On-demand optical fibre connectivity to non-GP villages (approx. 3.8 lakh villages nationwide) |
| Operations | 10-year operations and maintenance contract with Centralised Network Operating Centre (CNOC) monitoring |
| Power Backup | Adequate power backup at GPs and Blocks |
| Fibre Monitoring | Remote Fibre Monitoring System (RFMS) at Block level |
| Last-Mile Target | 1.5 crore rural home fibre (FTTH) connections over 5 years under the BharatNet Udyami Model |
| Nodal Agency | BSNL designated as the Project Management Agency (PMA) |
The Gujarat Agreement: Scope and Funding
The addendum signed at Sanchar Bhawan is a quadripartite agreement between the Digital Bharat Nidhi (DBN), the Government of Gujarat, Gujarat Fibre Grid Network Limited (GFGNL), and BSNL. The document was signed by Smt. P. Bharathi, Secretary of the Department of Science and Technology, Government of Gujarat, and Dinesh Kumar Garg, Deputy Director General (ABP Implementation-I), DoT, in the presence of Shyamal Misra, Administrator of Digital Bharat Nidhi.
What the Programme Covers
The programme covers a total of 14,287 Gram Panchayats. This includes:
- Upgradation of 14,264 existing Phase I and Phase II Gram Panchayats from linear to ring topology to improve network resilience
- Inclusion of 23 newly created Gram Panchayats into the network
- On-demand connectivity to 3,895 villages beyond the GP network, strengthening last-mile access in remote areas
Financial Outlay
The Government of India has approved ₹5,629 crore in financial support for implementation of ABP in Gujarat. This funding covers one-time capital expenditure as well as 10 years of operations and maintenance. The initiative is expected to facilitate more than five lakh rural home fibre connections across the state.
Implementation Model
Gujarat is among the eight states implementing BharatNet under the state-led model. The Gujarat government set up Gujarat Fibre Grid Network Limited (GFGNL) as a Special Purpose Vehicle (SPV) in 2016 to execute the state’s BharatNet Phase II project. GFGNL has already laid over 35,000 km of optical fibre cable and connected more than 8,000 locations across the state. Under ABP, GFGNL will serve as the implementing agency for the upgraded network.
Gujarat holds the distinction of being the first state among the eight state-led model states to secure approval for the Amended BharatNet Programme and sign the agreement.
Why Ring Topology Matters
One of the most significant technical upgrades under ABP is the shift from a linear topology to a ring topology for the optical fibre network. This change has direct implications for the quality and reliability of internet services in rural areas.
Linear vs. Ring Topology
| Aspect | Linear Topology (Old) | Ring Topology (New) |
|---|---|---|
| Structure | Fibre runs in a single line from point to point | Fibre forms a closed loop, providing an alternate path |
| Fault Tolerance | A single cut breaks connectivity for all downstream points | Traffic is automatically rerouted through the other side of the ring |
| Uptime | Lower, as repairs take time | More than 98% service uptime targeted |
| Scalability | Difficult to add new nodes without disrupting service | Easy to add new Gram Panchayats without interrupting existing connections |
| Redundancy | No backup path | Built-in redundancy with dual path connectivity |
For a state like Gujarat, which has a long coastline, remote tribal areas in the eastern belt, and the ecologically sensitive Gulf of Kutch and Kachchh regions, network resilience is critical. The ring topology ensures that even if a fibre line is damaged during a cyclone or flood in one area, connectivity to other areas on the ring remains uninterrupted.
What Is Digital Bharat Nidhi?
The Digital Bharat Nidhi (DBN) is a fund established by the Government of India to finance universal telecommunications access in underserved areas. It replaced the earlier Universal Service Obligation Fund (USOF) following the passage of the Telecommunications Act, 2023.
Key Facts About DBN
| Fact | Detail |
|---|---|
| Original Name | Universal Service Obligation Fund (USOF), established in 2002 |
| Renamed | As Digital Bharat Nidhi under the Telecommunications Act, 2023 |
| DBN Rules Notified | 30 August 2024 |
| Administrative Ministry | Ministry of Communications, through the Department of Telecommunications |
| Headquarters | Sanchar Bhawan, New Delhi |
| Mandate | Provide telecom services in underserved rural, remote and urban areas; support research and development; promote adoption of new telecom technologies |
| Funding Source | Contribution from telecom operators (percentage of Adjusted Gross Revenue); funds now flow through Consolidated Fund of India |
| Key Schemes Funded | BharatNet, 4G Saturation Project, Mobile Services in Left Wing Extremist Areas, Mobile Services in Himalayan and Border Areas, Submarine OFC to Andaman and Lakshadweep |
DBN is an attached office of the DoT and is headed by an Administrator. The current Administrator is Shyamal Misra. The fund’s broader mandate under the new rules includes providing targeted access to telecommunication services for women, persons with disabilities, and economically and socially weaker sections of society.
The Bigger Picture: BharatNet and Digital India
The Gujarat addendum is part of a much larger national effort to bridge India’s urban-rural digital divide. As of early 2026, BharatNet has connected over 2.15 lakh Gram Panchayats across the country, with close to 7 lakh km of optical fibre cable laid nationwide. More than 14 lakh FTTH connections have been commissioned, and over 1 lakh Wi-Fi hotspots installed.
What Improved Connectivity Enables
Reliable high-speed broadband in rural areas opens up access to:
- e-Governance: Citizens can access government services, file applications, and track grievances online without travelling to district headquarters
- Online Education: Students in rural Gujarat can access digital classrooms, recorded lectures, and live coaching sessions
- Telemedicine: Patients in remote villages can consult specialists through video conferencing, reducing the need for long-distance travel
- Digital Payments: Broadband enables UPI-based transactions, banking correspondents, and digital financial inclusion in unbanked villages
- Local Entrepreneurship: The BharatNet Udyami Model provides capital and operational subsidies to local entrepreneurs who set up last-mile internet delivery services, creating self-employment opportunities
National Context
Gujarat joins other states that have signed similar agreements for ABP implementation. Andhra Pradesh signed a Memorandum of Cooperation in February 2026 for a ₹2,432 crore project covering 13,426 Gram Panchayats. Other states including Odisha, Maharashtra, Telangana, Chhattisgarh, and Jharkhand are in various stages of forming their SPVs and finalising agreements.
The Union Minister for Communications, Jyotiraditya Scindia, has described the amended BharatNet as a $16.9 billion programme that will take optical fibre and broadband to every single village in India, calling it the “democratisation of technology” for every citizen.
Key Takeaways
- The Digital Bharat Nidhi (DBN) signed an addendum with Gujarat, GFGNL and BSNL to implement the Amended BharatNet Programme in the state.
- The Government of India approved ₹5,629 crore for upgrading rural broadband infrastructure in Gujarat.
- The programme will cover 14,287 Gram Panchayats, including upgradation of 14,264 from linear to ring topology and inclusion of 23 new GPs.
- On-demand connectivity will be provided to 3,895 villages to strengthen last-mile broadband access.
- The project is expected to facilitate more than five lakh rural home fibre (FTTH) connections across Gujarat.
- GFGNL, established in 2016 as a state SPV, has already laid over 35,000 km of optical fibre in Gujarat and will implement the programme.
- The Union Cabinet approved the Amended BharatNet Programme on 4 August 2023 with a total outlay of ₹1,39,579 crore.
- DBN replaced the Universal Service Obligation Fund (USOF) under the Telecommunications Act, 2023 and is headquartered at Sanchar Bhawan, New Delhi.
