NEW DELHI – The Indian government suffered a loss of ₹1,757.76 crore as state-owned telecom firm Bharat Sanchar Nigam Ltd (BSNL) failed to bill Reliance Jio Infocomm Ltd (RJIL) for infrastructure sharing over a decade, the Comptroller and Auditor General (CAG) of India said on Tuesday.
According to the CAG report, BSNL did not enforce the Master Service Agreement (MSA) with RJIL and failed to bill for additional technology used on its shared passive infrastructure. This resulted in significant financial losses, including penal interest, between May 2014 and March 2024.
The audit also found that BSNL incurred an additional loss of ₹38.36 crore by failing to deduct the share of the licence fee from the revenue paid to Telecom Infrastructure Providers (TIPs). The CAG further highlighted instances of short billing related to passive infrastructure sharing.
“Non-adherence to the terms and conditions laid down in the MSA with RJIL by BSNL and non-application of the escalation clause resulted in a loss of revenue of ₹29 crore (including GST) towards infrastructure sharing charges,” the statement said. BSNL’s failure to apply contractual terms effectively led to significant financial implications for the government exchequer, the report noted. The findings raise concerns over the financial management and contractual compliance of BSNL, which has struggled with financial losses in recent years despite government support and revival efforts.
