Cabinet approves Broadband Connectivity to Panchayats

The Union Cabinet gives a final nod to roll out National Optical Fiber Network (NOFN) for providing Broadband connectivity to district / block HQ's level to the Gram Panchayat. As per the scheme, Rs.20,000 crore would be invested in the initial phase by utilizing the Universal Service Obligation Fund (USOF). And a similar amount of investment is likely to be made by the private sector complementing the NOFN infrastructure while providing services to individual users.

NOFN strengthen economic developments through additional employment, e-education, e-health, e-agriculture etc. and reduction in migration of rural population to urban areas. As per a study conducted by the World Bank, with every 10% increase in broadband penetration, there is an increase in GDP growth by 1.4%.

NOFN will also facilitate implementation of various e-governance initiatives such as e-health, e-banking, e-education etc. thereby facilitating inclusive growth. It will also provide high bandwidth connectivity for electronic delivery of services to citizens. The proposed NOFN will enable effective and faster implementation of various mission mode e-governance projects amounting to approximately Rs.50,000 crore initiated by Department of Information Technology as well as delivery of a whole range of electronic services in the above areas by the private sector to citizens in rural areas.