HIGHLIGHTS 

The BharatNet project will issue a contract for laying optical fibre.

This year, the government will hold a spectrum auction.

The project is anticipated to be completed in 2025.

WHY IN NEWS 

Finance Minister Nirmala Sitharaman said on Tuesday that the government will hold a spectrum auction this year to help commercial telecom carriers put out 5G services in the fiscal year 2022-23. 'Spectrum auctions will be held in 2022 to allow private telecom companies to put out 5G mobile services in 2022-23,' Sitharaman stated.  She believes that the telecommunications industry, in general, and 5G in particular, can help to drive growth and create jobs.  'As component of a performance incentive scheme, a design-led manufacturing plan will be established to develop a robust ecosystem for 5G,' says the statement.

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She stated that 5% of yearly collections from the universal service obligation budget will be earmarked to allow inexpensive bandwidth and wireless network expansion in rural and isolated locations.  'This will encourage technology and solution R&D and commercialization. Our goal is for all villages and their citizens to have the same access to e-services, communications networks, and digital resources as city dwellers 'According to the Finance Minister.  She went on to say that in 2022-23, the BharatNet initiative would award the contract for installing optical fibre in all villages, including distant ones, through a public-private partnership (PPP).

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A bitcoin tax of 30% was also imposed at the Union Budget speech, among other items. 'The magnitude and frequency of transactions in virtual digital digital assets have made it essential to provide for a stipulated taxation system accordingly,' Sitharaman said. 'For the income tax of virtual digital products, I propose to provide that any income from the transfer of any virtual digital asset shall be taxed at a rate of 30 percent.'  'No reduction in regard of any expense or element shall be permitted in computing such income save the cost of purchase for losses from the transfer of online online services,' she said. 

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India will acquire its Central Bank Digital Currency (CBDC) this year, according to Sitharaman, and it will be overseen by the Reserve Bank of India (RBI). E-passports with embedded chips and future technologies would be handed out in 2022-23, according to Sitharaman, to ease residents in their abroad trips. A new venture called Drone Shakti was also unveiled. It will aid in the commercialization of drone use in many industries and will be pushed by startups.