Question

Difficulty: MediumNational Events, Acts, and Governance Initiatives

With reference to the 'Digital Bharat Nidhi' established under the Telecommunications Act, 2023, consider the following statements:

1. It replaces the erstwhile Universal Service Obligation Fund (USOF) to support telecom connectivity.
2. Its mandate includes funding research, development, and pilot projects for indigenous telecom technologies.
3. It is directly administered and managed by the Telecom Regulatory Authority of India (TRAI).

Which of the statements given above is/are correct?

  1. A
    1 and 3 only
  2. 1 and 2 onlyAnswer
  3. C
    2 and 3 only
  4. D
    1, 2, and 3

Answer

1 and 2 only
The statements indicating the transition from the Universal Service Obligation Fund and the expansion of the fund's scope to support indigenous research, development, and pilot demonstrations are both factually and legally correct under the Telecommunications Act, 2023. The statement regarding management by the Telecom Regulatory Authority of India is incorrect because the legislation mandates that the Digital Bharat Nidhi is administered by an administrator appointed by the Central Government.

Step-by-Step Solution

1
Examine the statutory origin and institutional transition of the fund.
The Telecommunications Act, 2023 replaces the colonial-era Indian Telegraph Act, 1885 and renames the Universal Service Obligation Fund (USOF) as the Digital Bharat Nidhi (DBN).
This establishes that the first statement is factually correct.
2
Analyze the statutory objectives and utilization scope of the Digital Bharat Nidhi.
Unlike the erstwhile USOF which primarily focused on rural network expansion, the Digital Bharat Nidhi broadens its scope to fund research, technological development, pilot schemes, and commercialization of indigenous telecom technologies.
This establishes that the second statement is correct.
3
Verify the designated administrative and managing authority of the fund.
Under Section 25 of the Telecommunications Act, 2023, the fund is managed by an administrator appointed by the Central Government (under the Ministry of Communications / Department of Telecommunications), not by the Telecom Regulatory Authority of India (TRAI).
This establishes that the third statement is incorrect.
4
Synthesize the evaluation to select the correct statement combination.
Only the first and second statements are correct.
Combining statements 1 and 2 satisfies the question requirements.

Key Concept

Statutory Governance and Scope of Digital Bharat Nidhi under the Telecommunications Act, 2023
Estimated Time:1m 15s
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