The telecom ministry is believed to have cleared the draft of national broadband plan, which aims at providing high-speed Internet access and e-governance services to over 160 million people by 2014.

According to sources in the know, the Department of Telecommunications (DoT) has cleared the draft of national broadband plan, which in few weeks will be sent to the Telecom Commission and to the Cabinet thereafter for approval.

Telecom Minister Kapil Sibal this week held a meeting with various telecom stakeholders to discuss the National Broadband Plan. The meeting was attended by representatives of various operators as well as telecom industry lobby groups COAI and AUSPI.

The National Optical Fibre Network (NOFN) is estimated to cost Rs 20,000 crore for providing wireless broadband connection to every village panchayat. It is likely to be rolled out in next three years by state-owned BSNL.

Operators had extended their support to NFON and sought that "judicious" use of the Universal Service Obligation Fund (USOF) be made for the network roll out.

Last December, telecom regulator TRAI came out with recommendations to set up a National Broadband Network, which is estimated to cost about Rs 60,000 crore.

The recommendations came amidst the government failure to meet its target of 20 million broadband connections by 2010.

The recommendations in 'National Broadband Plan' are expected to facilitate inclusive growth in the country, by covering large rural population in governance and decision making processes. Besides, it aims at extending to the rural areas better education, health and banking facilities.

To be set up in two phases, this network will be an open access optical fibre network connecting all habitations with population of 500 and above and will be completed by 2013.

TRAI suggested that the project be financed by the USO fund under the DoT, and the loans be provided by the government.