The Odisha government has signed a tripartite agreement worth ₹3,384.82 crore with Digital Bharat Nidhi (DBN) under the Department of Telecommunications (DoT) and Bharat Sanchar Nigam Limited (BSNL) to roll out the Amended BharatNet Programme in the state. The agreement aims to connect all 6,799 gram panchayats across Odisha through a modern fibre-based broadband network over the next three years. In a parallel move, the state also signed a separate Memorandum of Understanding with the Centre for Development of Advanced Computing (C-DAC) to collaborate on frontier technologies including artificial intelligence, quantum computing, and cybersecurity.
What the Agreement Covers
The tripartite agreement was signed between the Odisha government, Digital Bharat Nidhi (DBN) under the DoT, and BSNL. Under this pact, a carrier-grade IP-MPLS (Internet Protocol Multi-Protocol Label Switching) network will be established across the state to deliver reliable high-speed broadband and fibre-to-the-home (FTTH) connectivity to gram panchayats, government institutions, rural communities, and households. The entire network will be built on a ring topology, meaning each gram panchayat will be connected in a circular configuration so that if one fibre link fails, data can still flow through the alternate path, ensuring greater network resilience.
The project is expected to serve more than 50,000 villages across Odisha, significantly improving access to e-governance, digital education, telemedicine, financial inclusion, and rural economic activities. Officials estimate that the initiative will generate nearly 10,000 direct and indirect employment opportunities across the state. Each block will function as a Block Optical Fibre Connectivity Centre, from which connectivity will be extended to Panchayat Optical Fibre Connectivity Centres and then to individual households.
Implementation Model and Key Agencies
BSNL has been designated as the Single Project Management Agency (SPMA), responsible for overseeing the overall execution of the programme in Odisha. Creative Newtech Private Limited has been appointed as the Project Implementing Agency (PIA), tasked with the actual deployment of the network infrastructure. The project will be executed on a Design, Build, Operate and Maintain (DBOM) model with a contract duration of 10 years, which includes three years of operations and maintenance. This structure ensures that the agency responsible for building the network also maintains it, which addresses one of the key weaknesses of earlier BharatNet phases where infrastructure was built but often left non-functional due to poor maintenance.
The Amended BharatNet Programme: Background
The Odisha agreement falls under the Amended BharatNet Programme (ABP), which the Union Cabinet approved on 4 August 2023 with a total outlay of ₹1,39,579 crore. The programme is funded through the Digital Bharat Nidhi (DBN), the renamed version of the erstwhile Universal Service Obligation Fund (USOF). The USOF was established on 1 April 2002 under the Indian Telegraph (Amendment) Act, 2003 and was renamed as DBN under the Telecommunications Act, 2023, which came into effect to modernise India’s telecom regulatory framework.
The ABP was conceived as BharatNet Phase-III with a significantly expanded scope. Unlike the earlier phases that focused primarily on connecting gram panchayats, the Amended Programme aims to provide broadband connectivity to approximately 2.64 lakh gram panchayats and around 3.8 lakh non-GP villages on a demand basis across 28 states and 8 Union Territories. The programme also includes a provision to provide 1.5 crore FTTH connections distributed across all states and union territories through the BharatNet Udyami (BNU) model, where local entrepreneurs partner with BSNL to deliver last-mile connectivity.
A key shift in the ABP is the move from a purely infrastructure-centric approach to a service-oriented and professionally managed model. Under the earlier phases, the government primarily laid the optical fibre backbone, but connectivity to individual households depended on separate last-mile arrangements. The ABP integrates backbone and last-mile connectivity under a single contract, with the implementing agency responsible for the entire chain from block headquarters to the end user.
BharatNet: A Three-Phase Journey
BharatNet is one of the world’s largest rural broadband connectivity programmes, originally approved by the Union Cabinet on 25 October 2011 as the National Optical Fibre Network (NOFN). The project was renamed BharatNet in July 2015 and is implemented by the Bharat Broadband Network Limited (BBNL), a special purpose vehicle incorporated on 25 February 2012 under the Indian Companies Act.
The programme has been rolled out in three distinct phases. Phase-I was completed in December 2017, connecting over 1 lakh gram panchayats using existing optical fibre infrastructure of central public sector undertakings such as BSNL, RailTel Corporation of India Limited, and Power Grid Corporation of India Limited. The scope was later expanded to 1.25 lakh gram panchayats following a Cabinet approval in July 2017.
Phase-II, approved in July 2017, expanded the reach to an additional 1.5 lakh gram panchayats using an optimal mix of optical fibre cables, radio, and satellite technologies. The total approved funding for Phase-I and Phase-II was ₹42,068 crore (exclusive of GST and local taxes). Implementation was carried out through multiple models, including the state-led model (where states like Odisha, Chhattisgarh, Gujarat, Jharkhand, Maharashtra, and Telangana handled execution), the CPSU-led model (where BSNL executed work in Madhya Pradesh, Uttar Pradesh, and Sikkim), and the private sector model (in Punjab and Bihar). As of December 2024, Phase-I and Phase-II together had connected over 2.14 lakh gram panchayats through approximately 6.92 lakh km of optical fibre cables, with 11.74 lakh FTTH connections and 1.04 lakh Wi-Fi hotspots established.
What Makes the Amended Programme Different
The Amended BharatNet Programme represents a fundamental redesign of how India approaches rural broadband connectivity. The three most significant changes are the shift to ring topology, the integration of backbone and last-mile under a single contract, and the emphasis on service delivery rather than mere infrastructure creation.
Under the earlier phases, gram panchayats were typically connected through a linear topology, where fibre ran from a block headquarters to each gram panchayat in a chain. This meant that a single point of failure along the chain could disconnect multiple gram panchayats. The ABP mandates a ring topology where gram panchayats are connected in a circular network, providing redundancy and ensuring that service continues even if one segment of the fibre is damaged.
The DBOM model is another critical departure. In the earlier phases, different agencies often handled fibre laying, equipment installation, and maintenance separately, leading to coordination gaps and situations where infrastructure lay idle because no single entity was accountable for making it functional. Under the ABP, the Project Implementing Agency is responsible for designing, building, operating, and maintaining the entire network for the contract duration, creating a direct incentive to ensure the network actually works and generates revenue.
The programme also moves beyond connecting just gram panchayats. The ABP explicitly covers non-GP villages on a demand basis, addressing a major gap where villages near connected gram panchayats still lacked access. The provision for 1.5 crore FTTH connections through the BNU model further signals a shift toward actual service delivery, where local entrepreneurs earn revenue by providing internet connections to households, schools, hospitals, and anganwadis.
OCAC-C-DAC Partnership for Emerging Technologies
Alongside the BharatNet agreement, the Odisha Computer Application Centre (OCAC) signed a separate Memorandum of Understanding with the Centre for Development of Advanced Computing (C-DAC) to collaborate in the field of emerging technologies. The partnership covers research, innovation, electronics system design, skill development, and advanced technology deployment across multiple domains.
C-DAC is India’s premier research and development organisation working under the Ministry of Electronics and Information Technology (MeitY). It was established in 1988 in Pune, Maharashtra, in response to the United States’ denial of supercomputer exports to India. The organisation was tasked with building indigenous high-performance computing capabilities and has since become a leading player in areas such as high-performance computing, multi-lingual computing, cybersecurity, and artificial intelligence.
The MoU between OCAC and C-DAC will facilitate collaboration in artificial intelligence (AI), high-performance computing (HPC), cybersecurity, quantum computing, language technologies, and digital governance. The partnership aims to develop next-generation governance solutions, strengthen Odisha’s start-up ecosystem, promote research collaborations, and create skilling opportunities for the state’s youth. The agreement also covers electronics system design and advanced technology deployment across government departments and institutions.
Electronics and Information Technology Minister Mukesh Mahaling described both agreements as major milestones in Odisha’s digital transformation. Additional Chief Secretary Vishal Kumar Dev said the twin agreements would lay the foundation for an inclusive, technology-driven, and knowledge-based economy while substantially improving digital connectivity, innovation, and public service delivery across the state.
Key Takeaways
- The Odisha government signed a tripartite agreement worth ₹3,384.82 crore with Digital Bharat Nidhi (DBN), Department of Telecommunications (DoT), and BSNL to implement the Amended BharatNet Programme in the state.
- BSNL has been designated as the Single Project Management Agency (SPMA) and Creative Newtech Private Limited as the Project Implementing Agency (PIA) for the project.
- The project aims to connect all 6,799 gram panchayats across Odisha through a ring-topology-based IP-MPLS broadband network, serving more than 50,000 villages.
- The Amended BharatNet Programme (ABP), approved by the Union Cabinet on 4 August 2023, has a total outlay of ₹1,39,579 crore and aims to connect approximately 2.64 lakh gram panchayats and 3.8 lakh non-GP villages across 28 states and 8 UTs.
- The Digital Bharat Nidhi (DBN) is the renamed version of the Universal Service Obligation Fund (USOF), established on 1 April 2002 under the Indian Telegraph (Amendment) Act, 2003 and renamed under the Telecommunications Act, 2023.
- C-DAC, established in 1988 in Pune under MeitY, signed a separate MoU with Odisha’s OCAC to collaborate on AI, quantum computing, cybersecurity, and other emerging technologies.
