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Haryana, J&K hesitant to opt for state SPV model under BharatNet

The National Optic Fibre Network (NOFN) project, which was launched by the previous government in 2011 to connect 2.5 lakh gram panchayats (GPs) to deliver e-services, is running miserably behind schedule with just 35,000 GPs connected till now.

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Andhra Pradesh (AP) may have already started working on its plans for laying out its own broadband network under the proposed model of BharatNet programme, but states like Haryana and Jammu & Kashmir (J&K) are not keen on adopting the state special purpose vehicle (SPV) model and would rather leave the job to Bharat Broadband Network Ltd (BBNL), said Anupam Shrivastava, chairman and managing director (CMD), BSNL.

"State governments came forward (initially) but a few (of them) have withdrawn. Haryana and J&K are now backing out. They are saying it is not their core competence to work on laying the optic fibre cable (OFC). It is best left to the central government only," said the state-owned telecom company's chief.

The National Optic Fibre Network (NOFN) project, which was launched by the previous government in 2011 to connect 2.5 lakh gram panchayats (GPs) to deliver e-services, is running miserably behind schedule with just 35,000 GPs connected till now.

The earlier plan was to complete the entire project by December 31, 2016. The delay has been primarily because of right-of-way (RoW) issues at the state level.

In its bid to expedite the project to connect the GPs through a broadband network, the new government has proposed a new programme – BharatNet.

Under this initiative, which is yet to be fully conceptualised and implemented, each state will be permitted to carry out its part of the project to counter the problem of RoW and expedite the process of laying of the optic fibre cable (OFC) across over two lakh GPs.

"I am told a few states, after initially showing some initial enthusiasm, when they really worked (on their plan), they found that it is not their cup of tea. Its (broadband network creation) a very specialized job. You have to dedicate your resources (for it), you have to have telecom brains," said Shrivastava.

He said BBNL, a special purpose vehicle (SPV) created with Bharat Sanchar Nigam Ltd (BSNL), RailTel and PowerGrid, is planning to connect 80-90,000 GPs in the current fiscal and before the BharatNet is implemented.

The project cost for national broadband connectivity under the BharatNet has risen to Rs 72,000 crore from the earlier Rs 20,000 crore under the NOFN programme. The telecom minister has said most state governments were ready to work on state SPV model for connecting their GPs.

Shrivastava said if some states opt to create their broadband network through BBNL, the project would eventually land up with BSNL or some private telecom firm.

"Some states will do it (lay broadband network) through state SPVs and some states through BBNL, which will then be passed on to BSNL, Airtel or some other private telco. Mostly, it should come to BSNL," he said.

Under BharatNet, the government is looking at three options for the fast rollout of broadband network across GPs – the BBNL, state SPVs or state and private sector partnership model. Currently, the NOFN project is being operated by BBNL.

BharatNet project aims at providing high-speed internet connection of up to 15 megabyte per second (mbps) at Rs 150 per month. It is also looking at providing on-demand broadband connection with a bandwidth between 100 mbps and one gigabyte per second (gbps) to commercial houses through the proposed programme.

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