India rolls out Digital Bharat Nidhi, first set of rules of Telecommunications Act 2024

Digital Bharat Nidhi, the set of rules first drafted under the Telecom Act 2023 are now in effect, said Union Minister of Communications Jyotiraditya M Scindia. The new rules, previously known as Universal Service Obligation Fund (USOF) under the Indian Telegraph Act, 1885, will be one of the cornerstones of the upcoming Telecommunications Act. It essentially retains provisions of USOF while addressing new areas where the government’s support may be required.

“This reflects our commitment to ensure equal access to telecom services and in turn strengthen India’s mission of becoming Viksit Bharat @ 2047,” said the minister in his post on X.

What is Digital Bharat Nidhi?

The government overhauled the Indian Telegraph Act, created in 1885 under British rule, to include various aspects from the telecom, internet, and other relevant sectors under what it calls the Telecommunications Act. The first draft was published last year, but it received criticism and concerns from industry leaders, privacy advocates, and citizens. After necessary amendments, the Telecommunications Act, 2023, was passed by Parliament and approved by the President in December last year. The Digital Bharat Nidhi is a part of the Act, giving an outline on allocations of resources to provide telecom services in remote and rural areas at affordable prices via a universal access levy, which is 5 per cent of the telecom company’s adjusted gross revenue (AGR).

While the draft rules were released for a 30-day public consultation on July 4, Digital Bharat Nidhi became a part of the Telecommunications Act on June 26 officially. It has guidelines on how its funds would work as part of the Act’s provision on equipping remote areas with superior telecom services. The government said Digital Bharat Nidhi replaces rules 523 to 527 of the Indian Telegraph Rules, but does not override the existing system immediately. The fund management as laid out in USOF will continue to be in effect until its expiry.

The new rules will assign powers and functions of an administrator, who will look after the implementation and administration of Digital Bharat Nidhi. “The rules also provide for criteria for undertaking schemes and projects under Digital Bharat Nidhi and selection process for implementers,” said the government in a release. “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.”