DoT notifies rules for use of telecom fund Digital Bharat Nidhi

The Department of Telecommunication (DoT) has notified new rules that stipulate that funds from the Digital Bharat Nidhi (earlier called Universal Service Obligation Fund) will be allocated for improving connectivity.

The Digital Bharat Nidhi will fund the projects aimed at improving telecommunication services in underserved and remote areas, and for underserved groups of the society, such as, women, persons with disabilities and economically and socially weaker sections, an official press release said.

The first set of rules under the Telecommunications Act, 2023 (44 of 2023), called Telecommunications (Administration of Digital Bharat Nidhi) Rules, 2024, have been published. The Universal Service Obligation Fund was created under the Indian Telegraph Act, 1885.

Minister of Communications Jyotiraditya M. Scindia in a comment on X described the new rules as reflection of the government’s commitment to ensure equal access to telecom services and in turn strengthen India’s mission of becoming Viksit Bharat by 2047.

The schemes and projects funded under the Digital Bharat Nidhi need to meet one or more of criteria stipulated in the rules. These include projects for providing telecommunication services, including mobile and broadband services and telecommunication equipment required, and enhancing telecom security. The objective is to improve access and affordability of telecom services and introduce next-generation telecommunication technologies in underserved rural, remote and urban areas.

The criteria for undertaking schemes and project under Digital Bharat Nidhi also include: promotion of innovation, research and development; promotion and commercialisation of indigenous technology development and associated intellectual property, including creation of regulatory sandboxes, where necessary; development and establishment of relevant standards to meet national requirements; and encouragement to startups in the telecommunications sector.

The fund will also create a bridge between academia, research institutes, startups and industry for capacity building and development. It will promote sustainable and green technologies in the sector.

It is also provided that any implementer, receiving funding from the Digital Bharat Nidhi, shall share and make available such telecommunication networks and services on an open and non-discriminatory basis.