‘Rs 1,900 crore for AP Fiber Net’: Rural areas to get high-speed internet, virtual classrooms: CM Naidu

Amaravati: Chief Minister Nara Chandrababu Naidu stated that the previous government had completely derailed the AP Fiber Net project, a visionary initiative launched between 2014 and 2019.

He directed officials to take swift action to restore and revitalise the project.

The chief minister held a review meeting with officials at the Secretariat on Monday to assess the challenges, financial constraints, necessary corrective steps and new policy directions. He emphasised that the system, designed to benefit the public, students and government departments, was instead exploited for political purposes by the former administration.

He pointed out that while there were 8.70 lakh connections in 2019, the number had dropped to 4.50 lakh under the YSRCP government.

AP tops country in fiber net expansion

To date, 78,355 km of fiber optic cable has been laid across the State. The government aims to expand this to a total of 2 lakh km. Andhra Pradesh leads all Indian states in fiber optic network coverage, followed by Maharashtra (50,481 km), Tamil Nadu (49,616 km), Gujarat (35,246 km), and Telangana (29,143 km).

‘Transparency is paramount’

“We managed the organisation effectively with just 130 employees and provided over 8 lakh connections. But the YSRCP government created unauthorised posts to accommodate its party workers, expanding the workforce from 130 to 1,350 and misusing public funds. This was a new form of corruption where party affiliates were placed in government roles and used for political work. The fiber network was no exception. Those responsible must be held accountable. A thorough investigation should be conducted into those appointments, and full transparency must be ensured. At the same time, steps must be taken to rectify past mistakes and ensure a better future,” the chief minister said.

He instructed that the current 4,53,525 connections be increased to at least 8-10 lakh.

‘Rs 1,900 crore from the Centre over 10 years’

The chief minister approved the integration of AP Fiber Net with the BharatNet (Amended BharatNet Programme-ABP). Under this scheme, the Central Government will allocate Rs 1,900 crore to AP Fiber Net from 2025 to 2035.

He also approved the transition of fiber networks in 1,692 gram panchayats across Chittoor and Visakhapatnam districts from linear to ring architecture. Additionally, 480 new gram panchayats will be connected using the ring model. The Central Government will provide Rs 430 crore for this phase.

The CM proposed the creation of a Special Purpose Vehicle (SPV), jointly managed by the Central and State Governments, to oversee these projects. A CEO will be appointed by the State Government to head the SPV.

Special focus on increasing connections

During the review, the CM discussed capital expenditure and operational expenditure (CAPEX & OPEX) at the State level.

He reviewed the causes behind the decline in connections during the previous regime.

“From 2014–2019, triple play services (phone + IPTV + Internet) were provided with 150 channels at a monthly fee of Rs 149. From 2019–2024, the fee increased to Rs 350 while service quality significantly dropped, according to officials,” he said.

The CM directed that the selection process for set-top box suppliers be completed immediately and that a revenue-sharing model be developed with Local Cable Operators (LCOs) using new set-top boxes. He also recommended involving private companies in distributing set-top boxes in remote areas.

‘Restore virtual classroom services’

The CM emphasised the need to reintroduce services like virtual classrooms.

CM Naidu called for strengthening the fiber network in rural and underserved areas and resolving pending issues with LCOs. He directed the appointment of an EPC contractor to manage both the AP Fiber Net and BharatNet networks.

BSNL will serve as the project management agency, in line with ABP guidelines. The CM also instructed officials to prepare an action plan to fully utilise the network’s capabilities and present it at the next cabinet meeting.

From June 2024 to June 2025, Rs 192.5 crore has been allocated under CAPEX and Rs 66.76 crore under OPEX. An additional Rs 67.14 crore from the Central Government under BharatNet Phase 2 is yet to be received.

Fibre net for 12,946 panchayats

Andhra Pradesh currently leads the nation in village panchayat connectivity.

Fiber net services have been extended to 12,946 panchayats so far. Additionally, 104 government offices have active fiber net connections. At present, residential connections are available through five different service packages.

Over 21,000 institutions are benefiting from high-speed broadband, and connectivity has been extended to 175 telecom towers. The State government is working to further enhance this infrastructure. A total of 442 employees and officers are currently managing the project.