Telangana Adopts Telecom Act 2023, Bans Local Property Tax on Networks
The Telangana state government on Saturday adopted the Telecommunications Act, 2023, and the Telecommunications (Right of Way) Rules, 2024, barring all municipal corporations, municipalities, and gram panchayats from levying property tax, cess, or other duties on telecom networks.
Issued through Government Order (GO) Ms. No. 3 by the Information Technology, Electronics and Communications (ITE&C) department in Hyderabad, the directive supersedes the state's 2021 Right of Way (RoW) orders. The policy aims to align state norms with the central legislation, enable digital processing of RoW permissions, and safeguard underground infrastructure.
Under the new orders, telecommunication networks installed on, over, or under any property will no longer be treated as part of that property for any transaction, property tax, levy, cess, fees, or duties. Local administrative authorities have been instructed to immediately exclude such installations from their tax assessments.
All state departments, local bodies, corporations, and public sector units are required to nominate nodal officers and onboard them onto the Union Department of Telecommunications (DoT) Telecom e-Services portal within 30 days. All future RoW applications must be processed exclusively through this digital portal. The government specified that all pending RoW applications up to March 31, 2026, must be cleared by September 30.
The state has also declared BharatNet as a special project. Under this classification, public entities cannot charge fees, rent, annuities, or bank guarantees from BharatNet contractors or implementing agencies for deploying infrastructure on public property. Power distribution companies have been directed to treat electricity connections for BharatNet and other notified telecom projects on par with government connections, prioritise new power links, and provide composite billing for multi-site operators.
To prevent damage to underground cables, the government made the central "Call Before u Dig" (CBuD) application mandatory for all excavation works. Damaging critical telecom infrastructure now carries legal penalties of up to three years in prison, a fine of up to ₹2 crore, or both.
The Special Chief Secretary of the ITE&C department has been designated as the state nodal officer to oversee implementation. District collectors will monitor local progress during monthly telecom committee meetings, while the State Broadband Committee will conduct quarterly reviews.
