The Department of Telecommunications (DoT) is reportedly considering establishing a special purpose vehicle (SPV) for implementing various schemes of the Universal Services Obligation (USO) Fund, say news reports.

 It is believed that the SPV will require Rs 10 billion in authorised capital and Rs 1 billion as paid-up capital.

 Prior to this, the Union Cabinet had approved the formation of a special purpose vehicle with equity from the government of India for implementation and execution of the USO Fund?s programmes. The Cabinet had also approved an investment of Rs 200 billion in the National Optical Fibre Network (NOFN) scheme, to be completed in two years time.

 The objective of the NOFN scheme is to extend the existing optical fibre network, which is available up to district/block headquarter level, to the gram panchayat level initially by utilising the USO Fund.

 A similar amount is likely to be invested by the private sector, complementing the NFON infrastructure while providing services to individual users.