State govt clears `2,428 cr upgrade with new SPV

Vijayawada: The state government approved the creation of a new special purpose vehicle to execute the Centre’s Amended BharatNet Programme (ABP) in the state, clearing the way for a major expansion and upgrade of rural broadband infrastructure. The move follows the Union government’s in-principle approval of Rs 2,428 crore for the project, which aims to deliver high-speed connectivity to gram panchayats and unconnected villages under a revised, state-led implementation model.

The BharatNet initiative, funded through Digital Bharat Nidhi (formerly the Universal Service Obligation Fund), is among India’s largest digital infrastructure programmes, designed to close the rural connectivity gap by extending affordable broadband access and enabling e-governance, telehealth, digital education and rural enterprise networks. The Union Cabinet approved the programme’s amended architecture in August 2023 with an outlay of Rs 1.39 trillion, including capital expenditure of Rs 42,847 crore and ten-year operating costs of Rs 48,717 crore under a Design-Build-Operate-Maintain model.

Under the approved framework, Andhra Pradesh will establish Andhra Pradesh BharatNet Infrastructure Limited (APBIL) as the new implementing SPV, featuring equal representation from the State government and the Department of Telecommunications (DoT).

The project scope includes upgrading the existing BharatNet network, extending IP-MPLS ring connectivity to roughly 480 newly identified gram panchayats, and integrating operations and maintenance of both the BharatNet and APSFL Phase-I networks under a single EPC contractor. The government said unifying network management would reduce fragmentation and enhance reliability across rural broadband routes.

The Infrastructure and Investment Department will now proceed with issuing tenders on behalf of the SPV to implement the programme based on the Union government’s approved budget.

Officials said the upgraded infrastructure will serve as a long-term digital backbone supporting public services and private-sector telecom expansion in rural Andhra Pradesh.