Indian Telegraph Act to be amended: FM

NEW DELHI: With a view to extend financial support to infrastructure for cellular telephony in the rural areas, the Minister of Communications will bring a Bill in the Budget Session to amend the Indian Telegraph Act.

Stating this during his presentation of the Union Budget, P Chidambaram, Minister of Finance said that this would help bridge the digital divide between urban and rural India.

He said that more than 50 million rural connections will be rolled out in three years and thereafter a telephone connection will be available on demand.

Chidambaram also proposed to provide Rs 1500 crore for Universal Services Obligation Fund (USOF) in 2006-07, aiming to reach a target of 250 million connections by December, 2007.

The Minister informed that the Indian telecom sector is recording one of the fastest growth rates in the world. The teledensity stood at 11.75 per hundred at the end of January 2006.