Performance Audit on BharatNet, Ministry of Communications (Department of Telecommunications)

Findings

1. By November 2025, ₹39,888 crore had been spent against an approved ₹42,068 crore, and 2.19 lakh gram panchayats — 96.70 per cent of the revised scope of 2.26 lakh — were service-ready.

   “As of November 2025, an expenditure of ₹39,888 crore has been incurred against an approved budget of ₹42,068 crore (₹11,148 crore in Phase-I and ₹30,920 crore in Phase-II). As of November 2025, BharatNet had achieved service ready status in 2.19 lakh GPs (96.70 per cent) against the revised scope of 2.26 lakh GPs.”Executive Summary

2. Only 33.20 per cent of service-ready gram panchayats were actually operational as of November 2025. Fibre faults or cuts caused about 48 per cent of non-operational cases, and the average time to restore a fibre fault was 17 days.

   “Operational performance remained significantly low with persistent downtime, low availability and poor fault-resolution record. As of November 2025, only 33.20 per cent of service-ready GPs were operational. The main cause of downtime was fibre faults or cuts, accounting for approximately 48 per cent of non-operational cases. Moreover, the Mean Time to Restore (MTTR) fibre faults stood at an average of 17 days, reflecting delayed maintenance response.”Executive Summary

3. Only 17.91 per cent of the available bandwidth was used, and major telecom service providers withdrew over service quality; dark fibre went unleased in many cases despite demand, for want of a policy.

   “We noted that only 17.91 per cent of the available bandwidth was utilised. Further, key stakeholders, including major telecom service providers, withdrew due to service quality concerns. Despite demand, dark fibre was not leased in many cases due to absence of policy or delayed decisions at State Implementing Agency level. Low utilisation has curtailed BharatNet's potential to drive grassroots transformation.”Executive Summary

4. Phase-II was planned for 20 states but implemented in 13. Detailed project reports were prepared from desktop surveys although physical surveys were mandated, and in Punjab and Bihar projects went ahead with no project report at all.

   “Though Phase-II was planned in 20 states (21 Circles) through three implementation models — Central Public Sector Undertaking (CPSU) led model, State-led model and Private led model, it could be implemented in 13 States (14 Circles) only. Detailed Project Report (DPR) preparation, the starting point of project commencement, was carried out on the basis of desktop surveys although physical surveys were mandated. BBNL implemented projects in Punjab and Bihar without preparing DPRs under Private-led model.”Executive Summary

5. In the satellite component meant for remote areas, no Wi-Fi access points were installed even in service-ready gram panchayats, so end-users could not reach the broadband at all.

   “In the satellite component meant to provide connectivity in remote areas, BBNL did not install Wi-Fi Access Points even in service-ready GPs, thereby preventing end-users from accessing the intended broadband services.”Executive Summary

6. As of November 2025 only six states had reached 100 per cent service-ready status, with delays of two to six years across every implementation model.

   “Further, as on November 2025, only six States (seven Circles) achieved 100 per cent service-ready status with delays ranging from two to six years across all the Implementation models. The delayed roll-out deferred the availability of broadband connectivity in rural areas.”Executive Summary

7. BSNL, under the public-sector-undertaking model, diverted ₹2,001.43 crore of project funds to other purposes; the audit records that the money has since been recouped.

   “We also noted that BSNL under the CPSU-led model diverted funds of ₹2,001.43 crore from the project for other purposes which has since been recouped and submission of Utilisation Certificates is now required under Amended BharatNet Program (ABP).”Executive Summary

8. The audit's own conclusion is that BharatNet achieved substantial infrastructural success but fell short of its broader objective of bridging the digital divide, and reads the merger of BBNL into BSNL as an acknowledgement of the governance and execution deficiencies it found.

   “Overall, Audit concludes that while BharatNet has achieved substantial infrastructural success, it has fallen short of its broader objective of bridging the digital divide. The decision to merge BBNL with BSNL and implement BharatNet under a single-agency model (BSNL) through ABP reflects an acknowledgement of the governance and execution deficiencies noted in the project.”Executive Summary

Fact-checks citing this report

• ◑Lacks contextSet up a National Optical-Fibre Network up to the village level; and Wi-Fi zones in public areas. Deployment of broadband in every village would be a thrust area.