"Seven states have offered to come up with state or SPV (special purpose vehicle) run model. Madhya Pradesh, Tamil Nadu and Andhra Pradesh have already been talking about it," Prasad said after meeting with state IT ministers and principal secretaries.
Representatives from almost all states, except Delhi and some North Eastern states, were present in the meeting to discuss new model to roll out the broadband network.
Chhattisgarh, Odisha, Himachal Pradesh and West Bengal said that they will develop their own model for broadband network rollout as some expressed displeasure over the work of central public sector companies involved in National Optical Fibre Network.
Haryana said that it is exploring possibility of state-led model for the project.
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At present NOFN project, which aims to connect 2.5 lakh village panchayats by 2016, is being operated by SPV Bharat Broadband Network Limited and project is being executed by CPSUs BSNL, RailTel and Powergrid.
Andhra Pradesh Advisor for e-governance and IT J Satyanarayana said the state government expects to roll out broadband in 30 to 36 month period and provide connection with download speed of 10 megabit per second for Rs 150 per month.
Committee that has worked on design of BharatNet model in place of NOFN has estimated over three fold increase in project cost to Rs 72,778 crore from about Rs 20,000 crore approved earlier.
"Under BharatNet, broadband availability will be 99.9 per cent compared to about 96 per provisioned under NOFN. This means broadband service can be down only for 9 hours in a year compared to 350 hours under NOFN," the Department of Telecom Joint Secretary V Umashankar said.
"If we are able to create 100 users at each panchayat level, then it will enhance GDP by about Rs 66,500 crore," Umashankar said.