The first set of rules under the Telecommunications Act, 2023 (44 of 2023), ‘Telecommunications (Administration of Digital Bharat Nidhi) Rules, 2024’ was published vide notification of Government of India in Ministry of Communication, Department of Telecommunication number G.S.R. 530 (E), dated August 20, 2024 in the Gazette of India. The draft rules for the same was published on July 4, 2024 for a 30-day public consultation.

The Universal Service Obligation Fund created under the Indian Telegraph Act, 1885 has now been rechristened as Digital Bharat Nidhi vide section 24(1) of the Telecommunications Act, 2024, and it now addresses new areas which may require  support from Digital Bharat Nidhi in changing technological times.

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

Marching towards building a digitally connected Bharat and an #Atmanirbhar telecom sector.@DoT_India is proud to share that the first rules of The Telecom Act 2023, ‘Digital Bharat Nidhi’ are now in effect. This reflects our commitment to ensure equal access to telecom services… https://t.co/KXsEklrlrR

— Jyotiraditya M. Scindia (@JM_Scindia) September 1, 2024

The rules provide for powers and functions of administrator, who will be responsible for overseeing the implementation and administration of the Digital Bharat Nidhi. The rules also provide for criteria for undertaking schemes and projects under Digital Bharat Nidhi and selection process for implementers.

The rules stipulate that funds from the Digital Bharat Nidhi will be allocated to 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.

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 provision of telecommunication services, including mobile and broadband services and telecommunication equipment required for delivery of telecommunication services, and enhancing telecom security; improving access and affordability of telecom services and introduction of next generation telecommunication technologies in underserved rural, remote and urban areas.

The criteria for undertaking schemes and project under Digital Bharat Nidhi also include promoting innovation, research and development; promotion and commercialisation of indigenous technology development and associated intellectual property including creation of regulatory sandboxes, where necessary; developing and establishing relevant standards to meet national requirements and their standardisation international standardisation bodies; to encourage start-ups in telecommunications sector; to create bridge between the academia, research institutes, start-ups and industry for capacity building and development; and to promote sustainable and green technologies in telecommunications sector. These projects are aimed at achieving the goal of Atmanirbhar Bharat.

It is also provided that any Implementer, receiving funding from the Digital Bharat Nidhi for establishing, operating, maintaining or expanding a telecommunication network, shall share and make available such telecommunication network/services on an open and non-discriminatory basis.

Background:

The Telecommunications Act, 2023, was passed by the Parliament in December 2023, received the assent of President of India on December 24, 2023 and was published in the official Gazette on the same day. In accordance with section 1(3) the Department of Telecommunications had on 21.06.2024 issued Gazette Notification enforcing sections 1, 2,10 to 30, 42 to 44, 46, 47, 50 to 58, 61 and 62 of the Telecommunications Act w.e.f. 26.06.2024. The Department had also, on 04.07.2024, notified sections 6 to 8, 48 and 59(b) of the Act w.e.f. 05.07.2024.

Guided by the principles of Samavesh (Inclusion), Suraksha (Security), Vriddhi (Growth), and Tvarit (Responsiveness), the Act aims to achieve the vision of Viksit Bharat (Developed India). The provisions related with Digital Bharat Nidhi (DBN) are contained in Section 24-26 ,Chapter V of the Act.

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