BharatNet implementation through Public Private Partnership (PPP) Model
- July 1, 2021
- Posted by: OptimizeIAS Team
- Category: DPN Topics
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BharatNet implementation through Public Private Partnership (PPP) Model
Subject : Governance
Context : Recently, the Union Cabinet has accorded the approval for revised implementation strategy of BharatNet through Public Private Partnership mode.
Concept :
- The BharatNet programme will now extend upto all inhabited villages beyond Gram Panchayats (GPs) in the 16 states of the country.
- The revised strategy also includes creation, upgradation, operation, maintenance and utilization of BharatNet by the concessionaire who will be selected by a competitive international bidding process.
- The estimated maximum viability gap funding approved for the above PPP model is Rs. 19,041 crores.
- The States covered under the approval are Kerala, Karnataka, Rajasthan, Himachal Pradesh, Punjab, Haryana, Uttar Pradesh, Madhya Pradesh, West Bengal, Assam, Meghalaya, Manipur, Mizoram, Tripura, Nagaland and Arunachal Pradesh.
Significance of PPP Model for BharatNet
- It will leverage Private Sector efficiency for operation, maintenance, utilization and revenue generation.
- It is expected to result in faster roll out of BharatNet.
- The selected concessionaire (Private Sector Partner) is expected to provide reliable, high speed broadband services as per pre-defined Services Level Agreement (SLA).
- The extension of reach of BharatNet to all inhabited villages with reliable, quality, high speed broadband will enable better access of e-services offered by various Central and State Government agencies.
- It will also enable online education, telemedicine, skill development, e-commerce and other applications of broadband.
- It is expected that revenue will be generated from different sources including proliferation of broadband connections to individuals & institutions, sale of dark fibre, Fiberization of mobile towers, e-commerce etc.
- The proliferation of broadband in rural areas will bridge the rural-urban divide of digital access and accelerate the achievement of Digital India.
- The penetration and proliferation of broadband is also expected to increase direct and indirect employment and income generation.
BharatNet Project
- It is a project of national importance to establish a highly scalable network infrastructure accessible on a non-discriminatory basis.
- It aims to provide on demand, affordable broadband connectivity of 2 Mbps to 20 Mbps for all households and on demand capacity to all institutions.
- It is being funded by Universal service Obligation Fund (USOF).
- It is a Centre-State collaborative project, with the States contributing free Rights of Way for establishing the Optical Fibre Network.
- The Bharat Broadband Network Limited (BBNL) is a special purpose vehicle for management, establishment, and operation of BharatNet.