<p>"The objective of the scheme is to extend the existing optical fibre network which is available up to district/block headquarter level to the gram panchayat level initially by utilising the Universal Service Obligation Fund (USOF)," DoT secretary R Chandrasekhar told reporters here.<br /><br />The cost of this initial phase of the scheme is likely to be about Rs 20,000 crore and the target is to complete it in two years, he added.<br /><br />A similar amount of investment is likely to be made by the private sector complementing the NFON infrastructure while providing services to individual users, Chandrasekhar said.<br />As per a study conducted by the World Bank, with every 10 per cent increase in broadband penetration, there is an increase in GDP growth by 1.4 per cent.<br /><br />"NOFN will also facilitate implementation of various e-governance initiatives such as e-health, e-banking, e-education, etc, thereby facilitating inclusive growth," Chandrasekhar said.<br /><br />Initially, the broadband project will be executed by state-owned Bharat Sanchar Nigam Limited (BSNL) and other institutions like RailTel.<br /><br />"For the implementation and execution, the Cabinet has approved the formation of a special purpose vehicle (SPV) with equity from government of India," Chandrasekhar said.<br /><br />Later on BSNL, Power Grid and Gas Authority of India would also be made partners, he added.<br /><br />The NOFN will also provide high bandwidth connectivity for electronic delivery of services to citizens.<br /><br />The proposed NOFN will enable effective and faster implementation of various mission mode e-governance projects amounting to about 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.<br /><br />According to telecom regulator TRAI, the number of broadband subscribers at the end of August 2011 stood at 12.69 million.</p>
<p>"The objective of the scheme is to extend the existing optical fibre network which is available up to district/block headquarter level to the gram panchayat level initially by utilising the Universal Service Obligation Fund (USOF)," DoT secretary R Chandrasekhar told reporters here.<br /><br />The cost of this initial phase of the scheme is likely to be about Rs 20,000 crore and the target is to complete it in two years, he added.<br /><br />A similar amount of investment is likely to be made by the private sector complementing the NFON infrastructure while providing services to individual users, Chandrasekhar said.<br />As per a study conducted by the World Bank, with every 10 per cent increase in broadband penetration, there is an increase in GDP growth by 1.4 per cent.<br /><br />"NOFN will also facilitate implementation of various e-governance initiatives such as e-health, e-banking, e-education, etc, thereby facilitating inclusive growth," Chandrasekhar said.<br /><br />Initially, the broadband project will be executed by state-owned Bharat Sanchar Nigam Limited (BSNL) and other institutions like RailTel.<br /><br />"For the implementation and execution, the Cabinet has approved the formation of a special purpose vehicle (SPV) with equity from government of India," Chandrasekhar said.<br /><br />Later on BSNL, Power Grid and Gas Authority of India would also be made partners, he added.<br /><br />The NOFN will also provide high bandwidth connectivity for electronic delivery of services to citizens.<br /><br />The proposed NOFN will enable effective and faster implementation of various mission mode e-governance projects amounting to about 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.<br /><br />According to telecom regulator TRAI, the number of broadband subscribers at the end of August 2011 stood at 12.69 million.</p>