After a long period of delay, the Central Govenment has approved the National Optic Fibre Network (NOFN) Scheme which is intended to provide Broadband connectivity to the Panchayats and semi-rural areas in the country. The project is estimated to be of about Rs. 20,000 crore.
It was proposed earlier that the scheme will be entrusted to the BSNL since it has got infrastructure and connectivity throughout the country. But now the scheme will be entrusted to a Special Purpose Vehicle (SPV) to be formed probably with BSNL,MTNL, Rail-tel,PGCIL and GAIL.
The project will be funded by the Universal Service Obligation Fund (USOF), which has got more than Rs. 23,000 crore with it at present. Every year all the telcos are contributing to this fund.