The Amended BharatNet Program shifts the emphasis from creating assets to using them. Examine with reference to the State-led model.

BharatNet is funded by the Universal Service Obligation Fund, renamed Digital Bharat Nidhi (DBN) under the Telecommunications Act, 2023. For years it measured success by the number of Gram Panchayats (GPs) made "service-ready". The Amended BharatNet Program (ABP), approved on 4 August 2023, also pays to run the network and to get households connected. Under the State-led model, States share ownership of this shift [1].

Why building assets alone fell short

• Idle capacity: the CAG found that only 17.91% of available bandwidth was used (2017-18 to 2022-23) [2].
• Low uptake: only 30% of GPs had a working connection by February 2026 [3]. Wi-Fi hotspots worked in only 766 of about 1 lakh GPs [4].
• Tamil Nadu: 10,869 of 12,525 GPs were service-ready, but there were only 808 home fibre (FTTH) connections in December 2025 [5].

How ABP shifts the emphasis to use

• Running costs (OPEX) funded: of the ₹1,39,579 crore outlay, only ₹42,847 crore is for building assets (CAPEX). The rest pays for 10 years of operation and maintenance [6].
• Utilisation subsidy: the Tamil Nadu Utilisation Agreement (30 October 2026) subsidises over 5 lakh rural home connections and on-demand connectivity to 4,767 villages [1].
• Service delivery: home fibre brings e-Governance, telemedicine, online education and digital payments to villages [1].

Role of the State-led model

• Cooperative federalism: the tripartite agreement between DBN, the Tamil Nadu government and TANFINET shares responsibility for results [1].
• Local ownership: TANFINET, not BSNL, implements the programme. The Centre has allocated ₹1,632 crore, including 10 years of OPEX [5]. Gujarat already runs ABP under the same model [6].

Limits of the shift

• Weak State agencies: the CAG found unused (dark) fibre left unleased, partly because State Implementing Agencies had no policy or were slow to decide [2].
• Execution gaps: the Standing Committee flagged slow tendering, disputes with implementing agencies and weak agency capacity [3].
• Demand side: a subsidy alone cannot create demand where households lack devices and digital skills.

ABP moves BharatNet from "cable laid" to "homes connected", with States as delivery partners. The Standing Committee recommended State-wise performance audits and leasing of unused capacity [3]. Together with payments tied to connections that stay active, these steps can make rural broadband a real pillar of Digital India and of SDG 9.