India’s ₹1.39 lakh crore BharatNet 3 initiative confronts legal challenges and allegations of biased tender evaluations, threatening its 2024 rollout to connect 650,000 villages amid rural-urban digital divide concerns.
Delhi High Court prepares to review petitions challenging BharatNet 3’s tender process next week, as BSNL defends evaluations while rural internet penetration lags at 38% versus urban 69%.
Legal Storm Over Connectivity Push
India’s ambitious BharatNet Phase 3 project faces mounting legal challenges as the Delhi High Court prepares to hear public interest litigations (PILs) on July 3 alleging procedural irregularities in its ₹1.39 lakh crore ($18.6 billion) tender process. State-owned BSNL, the implementing agency, submitted affidavits on June 24 defending its vendor selection methodology, citing adherence to Central Vigilance Commission (CVC) guidelines. This follows Reliance Jio’s formal complaint to the Department of Telecommunications (DoT) in May 2024 alleging preferential treatment in tower allocation.
Transparency Concerns in Rural Rollout
The Comptroller and Auditor General’s (CAG) June 2024 report revealed 14% cost overruns in BharatNet Phase 2, questioning BSNL’s decision-making processes. With Phase 3 targeting 6.5 lakh villages, industry watchdogs like the Telecom Regulatory Authority of India (TRAI) warn that delays could exacerbate India’s digital divide – rural internet penetration remains at 38% versus 69% in urban areas (2023 data).
Regional Precedents and Accountability
BSNL’s revised vendor scorecards mirror transparency struggles seen in Indonesia’s Palapa Ring project, where 2022 procurement delays added 18 months to timelines. Legal expert Arvind Gupta notes: ‘The court’s intervention could follow South Korea’s 2019 5G rollout model, where judicial oversight accelerated anti-collusion protocols without delaying implementation.’
Analysts highlight parallels with Malaysia’s JENDELA broadband initiative, which achieved 96.9% populated area coverage by 2023 through mandatory third-party audits – a measure now demanded by Indian industry groups. As TRAI Chairperson PD Vaghela stated in ET Telecom’s June 25 coverage: ‘Mega-projects require balancing scale with accountability mechanisms that build public trust.’
