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Being Indian I can assure you that this will either:

a)take ages to be initiated and implemented or

b) be abandoned midway or

c)somehow the govt will be convinced to take over the costs of the project (which means a lot taxpayers money will go into MS and its Indian partners pockets in beneficial deals). - *most likely

Indian villages need basic infrastructure to support projects like these, which the govt will have to set up first. Moreover people in rural india are way to poor to bu microsoft products so the govt will pay for it. In the end most of these villages will get broadband in due course with or without the microsoft project there. This is just part of the media circus by our new govt.