BSNL’s Billing Blunder: A ₹1,757.56 Crore Loss for the Government
Massive Billing Failure Exposed
By: Arvind Jadhav
New Delhi: The Comptroller and Auditor General (CAG) of India has revealed a massive billing failure by state-owned telecom firm BSNL, resulting in a staggering loss of ₹1,757.56 crore to the government. This loss occurred due to BSNL’s failure to bill Reliance Jio for 10 years, starting from May 2014, as per their agreement on passive infrastructure sharing.
Lapses in Agreement Enforcement
According to the CAG, BSNL’s failure to enforce the Master Service Agreement (MSA) with Reliance Jio Infocomm Ltd (RJIL) and not billing for the additional technology used on BSNL’s shared passive infrastructure led to the massive loss. The loss includes penal interest and amounts to ₹1,757.76 crore between May 2014 to March 2024.
Additional Revenue Losses
Furthermore, the CAG identified another lapse by BSNL, which resulted in a short billing of passive infrastructure sharing charge. The non-adherence to the terms and conditions laid down in the MSA with RJIL and non-application of the escalation clause led to a loss of revenue of ₹29 crore (including GST) towards infrastructure sharing charges.
Cumulative Financial Burden
In addition to these losses, BSNL also incurred a loss of ₹38.36 crore due to its failure to deduct the share of licence fee from the revenue share paid to the Telecom Infrastructure Providers (TIPs). The cumulative effect of these lapses has resulted in a significant financial burden on the government.
Government’s Investment in BSNL
The government’s total investment in BSNL stood at ₹38,886.44 crore as of March 2023. The CAG’s findings raise serious concerns about financial accountability and operational efficiency within BSNL, highlighting the need for urgent reforms to prevent such losses in the future.
