In a shocking revelation, the Comptroller and Auditor General of India (CAG) has reported that Bharat Sanchar Nigam Limited (BSNL) failed to bill Reliance Jio Infocomm Ltd (RJIL) for 10 years, causing a staggering ₹1,757.56 crore loss to the government exchequer. The lapse was related to the passive infrastructure sharing agreement between the two telecom companies, where BSNL failed to enforce its Master Service Agreement (MSA) with Jio.
Key Findings from the CAG Report
- Failure to Bill for Additional Technology
- BSNL did not charge Reliance Jio for the extra technology deployed on its shared passive infrastructure, leading to a ₹1,757.56 crore loss, along with penal interest.
- Loss of ₹38.36 Crore in License Fee Revenue
- BSNL failed to deduct the required share of the license fee from payments made to Telecom Infrastructure Providers (TIPs), incurring additional losses.
- Improper Billing Practices
- BSNL undercharged for passive infrastructure sharing with Jio.
- Non-compliance with MSA terms and failure to apply the escalation clause resulted in a further loss of ₹29 crore (including GST).
Implications for BSNL & Government
This financial oversight raises serious questions about BSNL’s operational efficiency and contract management. The loss of over ₹1,757 crore, coupled with additional revenue losses, reflects poor internal controls and negligence in enforcing contractual obligations.
With BSNL already struggling in a highly competitive telecom market, such financial mismanagement could further strain its revival efforts. The government may now need to step in to rectify these issues and ensure stricter compliance in future agreements.
