The Department for Promotion of Industry and Internal Trade (DPIIT) has directed the Tamil Nadu FiberNet Corporation (TANFINET) to cancel and re-tender the BharatNet project in Tamil Nadu following allegations of restrictive conditions.

The Rs 20 billion project initiative aimed at connecting around 12,500 gram panchayats (GP) or village blocks in Tamil Nadu.

As per DPIIT circular, the Department of Telecommunications (DoT) is requested to direct TANFINET, Chennai for corrective action to be taken regarding immediate cancellation of tenders and re-tender with changed/non-restrictive qualification criteria. In addition, the ministry has also sought action taken report (ATR) so that the grievances by multiple domestic companies could be addressed.

Recently, homegrown companies had blamed the TANFINET of wrongdoings, saying that the state had put up restrictive conditions aimed to benefit only a handful of large firms.