₹2,432 Crore Boost for Rural Broadband: Centre, Andhra Pradesh Seal Pact to Fast-Track Amended BharatNet

The agreement was signed on February 22 at the Chief Minister’s Camp Office in Tadepalle, Guntur district, in the presence of Union Communications Minister Jyotiraditya M. Scindia, Minister of State Pemmasani Chandra Sekhar and Andhra Pradesh Chief Minister N. Chandrababu Naidu.

The document was executed by Shyamal Misra, Administrator of Digital Bharat Nidhi, and Movva Tirumala Krishna Babu, Special Chief Secretary, Infrastructure and Investment Department, Government of Andhra Pradesh.

Massive Investment for Rural Connectivity

The Government of India has cleared ₹2,432 crore in financial assistance for implementing the programme in Andhra Pradesh. The initiative forms part of the nationwide Amended BharatNet Programme – a ₹1.39 lakh crore public investment aimed at delivering optical fibre connectivity to every village in the country.

Speaking at the signing ceremony, Scindia described the programme as a transformational national project designed to extend broadband access to the remotest corners, enabling equal digital opportunity for all citizens.

Dr. Chandra Sekhar noted that the pact establishes a structured, state-led implementation model that balances financial support with accountability. He highlighted improvements in last-mile connectivity, 4G saturation, and reliable, affordable digital services for rural communities.

Chief Minister Naidu said the agreement marks a key milestone in Andhra Pradesh’s digital growth journey, adding that seamless broadband would strengthen education, healthcare delivery, governance systems and economic opportunities in rural areas.

What the Agreement Covers

The MoC lays down a collaborative framework under which the State Government will:

• Facilitate Right of Way (RoW) permissions

• Provide infrastructure access

• Ensure administrative coordination for speedy rollout

Funding will be largely supported by DBN, with additional contributions from the State Government under mutually agreed terms. The network created will be leveraged to maximise socio-economic benefits.

The Union Cabinet had approved the Amended BharatNet Programme on August 4, 2023, to upgrade and expand the existing BharatNet network into a future-ready, resilient broadband system.

Scope of Work in Andhra Pradesh

Earlier phases of BharatNet in the state were executed as follows:

• Phase I: Implemented by Power Grid Corporation of India Limited under the CPSU model, covering 1,692 Gram Panchayats.

• Phase II: Implemented by Andhra Pradesh State FiberNet Limited under a state-led model, covering 11,254 Gram Panchayats.

Under the amended programme, implementation will now be undertaken by a newly formed Special Purpose Vehicle, Andhra Pradesh BharatNet Infrastructure Limited.

The expanded plan includes:

• Upgradation of 1,692 Phase I Gram Panchayats from linear to ring topology for improved resilience

• Continued support for 11,254 Phase II Gram Panchayats

• Inclusion of 480 newly created Gram Panchayats

• On-demand connectivity for 3,942 villages

In total, 13,426 Gram Panchayats fall under the programme’s scope in Andhra Pradesh.

Expected Impact

The initiative is projected to enable over five lakh rural home fibre connections with central financial backing. Authorities expect the strengthened network to:

• Enhance digital governance

• Support online education

• Expand telemedicine services

• Promote digital payments

• Improve delivery of citizen-centric services

The agreement underscores a coordinated effort between the Union Government and Andhra Pradesh to deepen digital inclusion, modernise telecom infrastructure and build a resilient digital ecosystem across rural India.