The Union Cabinet has approved the plan to establish a National Optical Fibre Network (NOFN), which will be used to provide broadband connectivity to village Panchayats.
According to R. Chandrashekhar, secretary, Department of Telecommunications (DoT), ?The project cost is expected to be close to Rs 200 billion. A special purpose vehicle (SPV) will be formed to execute the network.?
He added, ?Currently, the equity in the special purpose vehicle will be provided by the government.?
He also said that Bharat Sanchar Nigam Limited (BSNL), Railtel, PGCIL and GAIL are likely to be roped in as equity partners.
?The funding for the project will be provided by the Universal Service Obligation (USO) Fund.?
The government plans to complete the roll-out in two years. The special purpose vehicle will obtain revenues by charging its customers access charges, according to TRAI guidelines.
