he Comptroller and Auditor General of India (CAG) has revealed that the government suffered a significant loss of Rs 1,757.56 crore due to state-owned telecom firm Bharat Sanchar Nigam Limited (BSNL) failing to bill Reliance Jio for a decade.
The loss stemmed from BSNL’s inability to enforce its Master Service Agreement (MSA) with Reliance Jio Infocomm Ltd (RJIL) for passive infrastructure sharing since May 2014.
According to the CAG report, BSNL’s mismanagement extended beyond the failure to bill RJIL. The telecom company also incurred an additional loss of Rs 38.36 crore due to its failure to deduct the share of the licence fee from the revenue paid to Telecom Infrastructure Providers (TIPs). This lapse further contributed to financial setbacks for the government exchequer over the years.
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The report highlighted that BSNL did not adhere to the agreed-upon escalation clause in the MSA with RJIL, resulting in underbilling for infrastructure-sharing charges. This oversight led to a further revenue loss of Rs 29 crore, including Goods and Services Tax (GST), which could have otherwise been recovered.
This revelation raises serious concerns over BSNL’s operational inefficiencies and its failure to uphold contractual obligations.
The financial oversight not only impacted government revenue but also exposed gaps in regulatory compliance and accountability within the state-run telecom operator.
Industry experts believe that such lapses undermine the competitiveness and financial viability of BSNL, which is already struggling to keep pace with private telecom giants.
The lack of strict monitoring and enforcement of contracts has been a recurring issue, affecting the public sector telecom firm’s revenue streams and overall sustainability.
The CAG’s findings underscore the urgent need for BSNL to implement stronger compliance mechanisms and improve financial management to prevent further losses. The report has now been brought to public attention, prompting calls from policymakers and stakeholders for corrective actions.
To address these concerns, experts suggest stricter auditing practices, real-time billing oversight, and enhanced accountability measures within BSNL’s operations.
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The government is expected to take steps to review BSNL’s financial and contractual practices to ensure such lapses do not recur in the future.
As this matter gains traction, telecom industry observers and regulatory authorities will be closely monitoring the next steps taken by BSNL and the government to rectify these financial discrepancies and restore public trust in the state-run telecom enterprise.