Memorandum of Cooperation Signed between Digital Bharat Nidhi and Government of Andhra Pradesh for Expedited Rollout of Amended BharatNet Programme

1. At a Glance

Memorandum of Cooperation (MoC) signed on 23 Feb 2026 between Digital Bharat Nidhi (DBN), Department of Telecommunications (DoT) and the Government of Andhra Pradesh to expedite the rollout of the Amended BharatNet Programme (ABP) in the state [S1][S2].
₹2,432 crore central financial support approved for AP; covers 13,426 Gram Panchayats and >5 lakh rural Fibre-to-the-Home (FTTH) connections [S2].
Significance for UPSC: Operationalises the Telecommunications Act, 2023 (DBN replaces USOF), federal cooperation in rural digital infrastructure, and the State-Led Model under ABP [S3][S4].

2. Why in the News

23 Feb 2026: MoC signed in presence of Union Communications Minister Jyotiraditya M. Scindia, MoS Dr. Pemmasani Chandra Sekhar, and AP CM N. Chandrababu Naidu [S1][S2].
Signed by Shyamal Misra, IAS (Administrator, DBN) and Movva Tirumala Krishna Babu, IAS (Special Chief Secretary, Infrastructure & Investment, GoAP) [S2].
Follows the operationalisation of ABP under State-Led Model already initiated in Gujarat [S5].

3. Background & Evolution

2011: BharatNet (originally NOFN) launched to connect 2.5 lakh GPs with optical fibre — implemented by BBNL [S6].
04 Aug 2023: Union Cabinet approves Amended BharatNet Programme with outlay ₹1,39,579 crore; BSNL designated single Project Management Agency (PMA) for O&M [S6].
2023: Telecommunications Act, 2023 enacted; renames USOF as Digital Bharat Nidhi [S4].
20 Aug 2024: Telecommunications (Administration of Digital Bharat Nidhi) Rules, 2024 notified in Gazette [S4].
2025: ABP operationalised in Gujarat under State-Led Model [S5].
23 Feb 2026: AP MoC signed [S2].

4. Core Static Facts

Parent Ministry: Ministry of Communications → Department of Telecommunications [S1].
Fund: Digital Bharat Nidhi (successor to Universal Service Obligation Fund, est. under Indian Telegraph (Amendment) Act, 2003) [S4].
Statutory base: Telecommunications Act, 2023; Rules of 2024 [S4].
DBN corpus: ₹1,62,871.64 crore collected as Universal Access Levy up to 31 Mar 2024 [S4].
ABP national scope: Optical fibre to 2.64 lakh GPs in ring topology using MPLS; ~3.8 lakh non-GP villages on demand-driven basis [S5].
AP MoC outlay: ₹2,432 crore [S2].
AP GP coverage: 13,426 GPs = 1,692 Phase-I (upgrade linear→ring) + 11,254 Phase-II + 480 newly created GPs [S2].
Target FTTH: >5 lakh rural home fibre connections in AP [S2].
Single PMA (O&M): BSNL [S6].
State obligation under MoC: facilitate Right of Way (RoW), infrastructure access, coordination [S2].

5. Multi-Dimensional Analysis

Administrative / Federalism - State-Led Model: AP government becomes execution partner; centre provides funds, state provides RoW & coordination [S2]. - Solves bottlenecks faced in earlier centrally-driven BharatNet phases (RoW delays, last-mile execution) [S2].

Economic - ₹2,432 crore central capex into rural telecom; enables digital payments, e-commerce reach in rural AP [S2]. - Strengthens BSNL's ARPU base via O&M role [S6].

Social / Digital Inclusion - DBN mandate explicitly covers women, PwDs, economically/socially weaker sections [S4]. - FTTH-to-home shifts model from GP-level connectivity to household-level access — enabling telemedicine, online education [S2].

Legal / Constitutional - Statutory backing under Telecommunications Act, 2023 — replaces the pre-2023 USOF regime constituted under Indian Telegraph Act [S4]. - MoC, not an MoU, signals cooperative-federal commitment without binding contract structure.

Scientific / Technological - Migration from linear to ring topology for network resilience and redundancy [S2]. - Backbone uses MPLS (Multi-Protocol Label Switching) [S5].

6. Recent Developments (last 12-18 months)

20 Aug 2024: DBN Rules, 2024 notified [S4].
2025: ABP operationalised in Gujarat under State-Led Model [S5].
23 Feb 2026: AP MoC signed; ₹2,432 cr approved [S1][S2].
Subsequent implementation agreement signed between DBN-DoT, GoAP, APBIL, BSNL, APSFL for executing ABP in AP [S7].

7. Prelims Hooks

Digital Bharat Nidhi replaced Universal Service Obligation Fund under the Telecommunications Act, 2023 [S4].
USOF was originally constituted under Indian Telegraph (Amendment) Act, 2003 [S4].
DBN Rules notified on 20 August 2024 [S4].
Amended BharatNet Programme approved by Union Cabinet on 4 August 2023 with outlay ₹1,39,579 crore [S6].
ABP targets 2.64 lakh Gram Panchayats in ring topology using MPLS [S5].
ABP single Project Management Agency for O&M: BSNL [S6].
AP MoC: ₹2,432 crore for 13,426 GPs [S2].
AP signing date: 23 February 2026, presided by Union Minister Jyotiraditya M. Scindia [S1].
DBN Administrator: Shyamal Misra, IAS [S2].
Universal Access Levy collected up to 31 Mar 2024: ₹1,62,871.64 crore [S4].
Implementing parastatals in AP: APBIL (AP Broadband Infra Ltd) and APSFL (AP State FiberNet Ltd) [S7].
ABP also extends connectivity to ~3.8 lakh non-GP villages on demand-driven basis [S5].

8. Mains Relevance

GS-II: Government policies & interventions; Centre–State relations / cooperative federalism.
GS-III: Infrastructure (digital/telecom); Inclusive growth; Science & Technology (network architecture).
Syllabus headings: "Welfare schemes for vulnerable sections", "Infrastructure: Energy, Ports, Roads, Airports, Railways etc.", "Awareness in fields of IT".
Plausible stems: 1. "Discuss how the Amended BharatNet Programme, backed by Digital Bharat Nidhi, marks a shift from centrally-driven to State-Led models of rural digital infrastructure." 2. "The Telecommunications Act, 2023 reimagines the universal service mandate. Critically examine in light of the Digital Bharat Nidhi architecture." 3. "Bridging India's digital divide requires last-mile fibre to homes, not just to Gram Panchayats. Comment with reference to recent BharatNet reforms."

9. Related Topics to Study Next

Telecommunications Act, 2023 — parent statute of DBN.
National Digital Communications Policy, 2018 — policy umbrella for BharatNet [S8].
PM-WANI scheme — public Wi-Fi rollout, complementary to BharatNet.
BSNL Revival Package — BSNL is single PMA for ABP O&M.
Digital India Programme — broader umbrella initiative.
Right of Way Rules, 2016 (amended 2022) — central to MoC's state obligations.
5G rollout & Spectrum auctions — alternate connectivity layer.
Direct-to-Mobile / Satcom (e.g., ISRO-DoT collaborations) — for non-GP coverage gaps.

10. Common Errors / Trap Areas

DBN is not a new fund; it is the renamed USOF under the 2023 Act — don't treat as separate creation.
BharatNet is implemented by BSNL (PMA under ABP) — earlier nodal was BBNL; don't confuse the era.
ABP outlay (₹1,39,579 cr) ≠ original BharatNet Phase-I+II outlay (₹42,068 cr) [S6].
The AP agreement is an MoC, not an MoU — UPSC sometimes tests this nuance.
DBN sits under MoC (Ministry of Communications), not MeitY.
APSFL (state fibre PSU) is distinct from BSNL; both are signatories to subsequent implementation pact [S7].

11. Sources

[S1] Memorandum of Cooperation Signed between DBN and GoAP — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2231666 — (tier: 1)
[S2] PIB release content on MoC details (₹2,432 cr, 13,426 GPs, signatories) — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2231666&reg=3&lang=1 — (tier: 1)
[S3] BharatNet overview — https://www.pib.gov.in/PressReleaseIframePage.aspx?PRID=2123137&reg=3&lang=2 — (tier: 1)
[S4] DoT notifies DBN Rules, 2024 — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2050737 — (tier: 1)
[S5] Amended BharatNet Program Operationalises in Gujarat (State-Led Model) — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2139308 — (tier: 1)
[S6] BharatNet: Bridging the Digital Divide — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2086701 — (tier: 1)
[S7] Implementation Agreement DBN-GoAP-APBIL-BSNL-APSFL — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2260827&reg=3&lang=1 — (tier: 1)
[S8] National Digital Communications Policy, 2018 — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2080648 — (tier: 1)