"The NOFN will lead to an empowered India with villages boarding the Internet superway. It will also lead to an explosion of e-commerce in the country," he said.
Prasad was speaking at the first meeting of the Centre and states on various initiatives under the Digital India programme.
The NOFN aims at providing broadband connectivity to 2.5 lakh gram panchayats in India by March 2017.
He also added that as Internet penetrates into every village and city, the people will go online and avail the e-commerce route to buy things and that will eventually lead to expansion of e-commerce and building eco-system.
"This will lead to creation of more jobs and growth in the economy," he added.
"The programme aims to transform India into a digitally empowered society and knowledge economy," Prasad said. He said the approval was a follow up to key decisions taken on the design of the programme during a meeting held by the prime minister Aug 7.
The programme has been envisaged by the department of electronics and information technology. The programme will be implemented in phases from the current year till 2018. It would ensure that government services are available to citizens electronically.
It would also bring in public accountability through mandated delivery of government's services electronically, an official release said in New Delhi.
Written with inputs from IANS