Content
- BharatNet
- India’s DBT: Boosting Welfare Efficiency
BharatNet
Overview of BharatNet
- Flagship rural broadband connectivity project of the Government of India.
- Targets 2.5 lakh Gram Panchayats (GPs), making it one of the largest rural telecom projects globally.
- Aims to bridge the rural-urban digital divide.
Relevance : GS 2(Governance) ,GS 3(Digital Infrastructure)
Core Objectives
- Provide unrestricted broadband access to all telecom and internet service providers.
- Facilitate delivery of:
- e-Governance
- e-Education
- e-Health
- Digital commerce & content
- Empower GPs as digital service hubs, promoting inclusive and equitable growth.
Project Phases
Phase I (Completed in Dec 2017):
- Focus: Laying optical fibre to 1 lakh GPs using existing infrastructure.
Phase II (Ongoing):
- Coverage expansion to 1.5 lakh GPs using optical fibre, radio, and satellite technologies.
- Collaboration with state governments and private entities.
Phase III (Ongoing):
- Future-proofing with 5G integration, robust last-mile connectivity.
- Part of Amended BharatNet Program (ABP) approved in August 2023.
Amended BharatNet Program (ABP)
- Optical Fibre to 2.64 lakh GPs using ring topology.
- On-demand connectivity to non-GP villages.
- Includes:
- IP-MPLS network
- Remote Fibre Monitoring System (RFMS)
- 10-year Operation & Maintenance (O&M)
- Power backup
- Total sanctioned cost: ₹1,39,579 crore.
Institutional Framework
- Executing Agency: Bharat Broadband Network Limited (BBNL), SPV incorporated in 2012.
- Under ABP: BSNL is appointed as the Project Management Agency (PMA) for O&M.
Current Status (as of March 2025)
- 2,18,347 GPs made service-ready.
- 6.92 lakh km of Optical Fiber Cable (OFC) laid.
- 42.13 lakh route km of OFC coverage.
- 12.21 lakh FTTH connections commissioned.
- 1.04 lakh Wi-Fi hotspots installed.
Usage of BharatNet Network
- Bandwidth leasing, dark fibre, and Wi-Fi hotspots in public areas.
- FTTH provided to schools, health centres, and government institutions.
- Last Mile Connectivity (LMC) enabled via:
- FTTH
- Wi-Fi
- Other broadband technologies
Complementary Schemes
Pradhan Mantri Gramin Digital Saksharta Abhiyan (PMGDISHA)
- Over 6.39 crore individuals trained in digital literacy.
National Broadband Mission (NBM)
- Launched to accelerate digital infrastructure.
- NBM 2.0 started on January 17, 2025.
- Centralized Right of Way portal – GatiShakti Sanchar launched.
Financial Overview
- Funded by: Digital Bharat Nidhi (DBN) (earlier USOF).
- Phase I & II sanctioned funding: ₹42,068 crore.
- Funds disbursed (as of Dec 2023): ₹39,825 crore.
CSC e-Governance Role
- CSC-SPV provides last-mile connectivity via:
- Wi-Fi Access Points: 1,04,574
- FTTH connections: 11.41 lakh (as of Sep 2024)
- Implemented overhead OFC pilot projects in GPs.
NABARD Collaboration
- MoU between DBN and NABARD for rural development:
- Sharing reference data, digital content & services.
- Enhancing digital economy through broadband-led governance.
- Capacity building & ICT integration in rural financial systems.
Mobile Connectivity Integration
- As of Dec 2024:
- 6,25,853 villages covered with mobile connectivity.
- 6,18,968 villages have 4G coverage.
- Complements BharatNet by improving access, affordability, and reach.
Impact and Benefits
Digital Inclusion
- Internet in remote areas enabling e-services.
Economic Upliftment
- Promotes rural entrepreneurship, fintech access, and digital payments.
Health & Education
- Enables telemedicine, e-learning, and smart classrooms.
E-Governance
- GPs empowered to roll out services like birth certificates, land records, etc.
India’s DBT: Boosting Welfare Efficiency
Background and Context
- DBT Launched (2013): Aimed to reform welfare delivery by replacing in-kind and paper-based transfers with direct, digital money transfers to beneficiaries.
- Technological Backbone: Based on the JAM trinity—Jan Dhan accounts, Aadhaar, and Mobile numbers—ensuring identity-based, leak-proof delivery.
Relevance : GS 2(Governance)
Key Achievements
- ₹3.48 Lakh Crore Savings: Cumulative savings due to elimination of leakages, fraud, and inefficiencies across various schemes (2009–2024).
- 16-Fold Beneficiary Increase: Beneficiary count rose from 11 crore in 2013 to 176 crore by 2024.
- Subsidy Rationalisation: Share of subsidies in total expenditure reduced from 16% (2009–13 average) to 9% in 2023–24.
Welfare Efficiency Index (WEI)
- A Composite Metric Developed to quantify overall gains in welfare delivery.
- Components:
- DBT Savings (50% weight): ₹3.48 lakh crore cumulative leakage reduction.
- Subsidy Reduction (30% weight): 7% reduction in subsidy share of total expenditure.
- Beneficiary Growth (20% weight): 16x increase in coverage.
- Outcome: WEI surged from 0.32 (2014) to 0.91 (2023) — a 3x increase in efficiency and inclusion.
Budgetary Efficiency
- Pre-DBT Era (2009–2013):
- ₹2.1 lakh crore/year on subsidies.
- High leakages due to ghost beneficiaries and intermediaries.
- Post-DBT Era (2014–2024):
- Subsidy expenditure fell, yet beneficiary coverage massively increased.
- COVID-19 Spike (2020-21): Temporary rise in subsidies due to emergency needs; efficiency resumed post-pandemic.
Sectoral Impact Analysis
- Food Subsidies (PDS):
- ₹1.85 lakh crore saved.
- Aadhaar-authenticated ration cards curtailed diversion and ghost claims.
- MGNREGS:
- 98% timely wage disbursals.
- ₹42,534 crore saved through reduced fraud and delays.
- PM-KISAN:
- ₹22,106 crore saved.
- 2.1 crore ineligible beneficiaries weeded out.
- Fertilizer Subsidy:
- Targeted distribution led to 158 lakh MT lower offtake.
- ₹18,699.8 crore saved.
Correlation and Causality Insights
- Positive Correlation (0.71):
- Increase in beneficiary coverage correlated strongly with DBT savings.
- Negative Correlation (-0.74):
- Higher DBT savings associated with reduction in subsidy-to-expenditure ratio, showing increased fiscal efficiency.
- Key Implication: More people benefited without increasing fiscal burden.
Broader Governance Implications
- Efficiency without Exclusion: The model reduced costs without cutting entitlements—a critical concern in welfare reform.
- Data-Driven Governance: Digital infrastructure enabled real-time tracking, verification, and course correction in welfare programs.
- Global Replicability: The WEI framework and JAM-based delivery system offer a replicable model for developing economies.
Criticisms Addressed
- Myth of “Reduced Welfare Spending”: Data shows welfare coverage increased despite declining subsidy ratios.
- DBT ≠ Budget Cuts Alone: Efficiency gains are multi–dimensional—targeting, technology, and verification played key roles.
Future Scope and Recommendations
- Expand to Remaining Schemes: DBT coverage can extend to additional centrally sponsored/state schemes.
- Address Exclusion Errors: Ensure no genuine beneficiary is left out due to digital or documentation gaps.
- Strengthen Last-Mile Infrastructure: Improve digital connectivity and banking access, especially in tribal and remote areas.
Conclusion
- DBT = Fiscal Prudence + Social Inclusion.
- Transformative Impact: DBT has redefined welfare delivery by:
- Cutting leakages.
- Expanding coverage.
- Improving trust in governance.
- Global Lessons: India’s DBT model showcases how technology, transparency, and targeted delivery can coexist to build a more equitable welfare state.
