Key Details
Near-complete physical coverage: 2.19 lakh of the revised 2.26 lakh Gram Panchayats were service-ready by November 2025, but only 33.20% were operational.
₹39,888 crore spent: Against the Cabinet-approved budget of ₹42,068 crore, expenditure stood at ₹39,888 crore as of November 2025.
Severe downtime: Fibre cuts accounted for 48% of network downtime, while equipment and power faults contributed another 26%. Average fibre fault restoration time was 17 days.
Low network utilisation: Only 17.91% of available bandwidth at service-ready GPs was being utilised, while just 766 of 1.15 lakh planned satellite-based Wi-Fi connections were functional by March 2025.
Major execution differences: The private-led model recorded 90.11% operational GPs, compared with just 10.74% under the CPSU-led model and 39.80% under the State-led model.
Financial and governance concerns: CAG flagged diversion of ₹2,001.43 crore by BSNL from funds advanced for Phase-II, along with delays in asset capitalization and weak financial controls.
Structural transition: BBNL has been merged with BSNL, with BSNL now responsible for implementing the Amended BharatNet Programme, which aims to extend connectivity to 6.4 lakh villages/GPs.
From Fibre Deployment to Reliable Digital Infrastructure
BharatNet’s challenge is shifting from network creation to network performance. CAG recommends stronger ground-level planning, remote fibre monitoring, GIS integration, centralised network management and performance- and service-level agreement (SLA)-linked funding.
Implementation models also produced markedly different results. The private-led model, combining milestone-based payments with seven-year maintenance contracts, achieved substantially better operational performance. The finding strengthens the case for linking future funding and contracts to uptime, maintenance and service availability, rather than infrastructure creation alone.
Why It Matters
BharatNet underpins rural access to e-governance, education, healthcare and digital commerce. High downtime, low bandwidth utilisation and weak last-mile connectivity can limit these benefits even where fibre has been laid.
The next phase should therefore measure success not by “Gram Panchayats connected” but “Gram Panchayats reliably served”—with accountability for uptime, utilisation, last-mile access and service quality.
Policy Relevance
Links public spending to outcomes: Future BharatNet funding can be tied to measurable uptime, service availability and SLA performance rather than infrastructure deployment alone.
Strengthens maintenance systems: Remote fibre monitoring, GIS mapping and centralised network management can reduce prolonged outages and improve fault restoration.
Encourages efficient delivery models: The stronger performance of the private-led model provides evidence for considering performance-based PPP, BOOT or DBOM approaches.
Improves rural digital inclusion: Higher network utilisation and functional Wi-Fi can expand access to digital education, healthcare, government services and local businesses.
Addresses governance risks: A specialised BharatNet structure within BSNL, with separate financial oversight and clearer institutional responsibilities, could strengthen accountability as the programme expands.
Follow the Full CAG Report Here: Report of the Comptroller and Auditor General of India on Performance Audit on BharatNet Union Government Ministry of Communications Department of Telecommunications Report No. 19 of 2026 (Performance Audit - Civil)