Modi government loses ₹1,757cr as BSNL fails to bill Jio
What's the story
The Indian government has incurred a loss of ₹1,757.56 crore due to Bharat Sanchar Nigam Limited (BSNL)'s failure to bill Reliance Jio Infocomm Ltd (RJIL) for a decade, the Comptroller and Auditor General of India (CAG) has revealed. The financial discrepancy arose from an agreement between the two companies for passive infrastructure sharing. The CAG report highlights BSNL's inability to enforce the terms of its master service agreement with Jio and charge for additional technology used on shared infrastructure.
Financial impact
BSNL's lapse from May 2014 to March 2024
The lapse by BSNL, which spanned from May 2014 to March 2024, led to huge losses for the Indian government. The CAG report also revealed that BSNL suffered a loss of ₹38.36 crore for not deducting the license fee share from payments to Telecom Infrastructure Providers (TIPs). Billing discrepancies for infrastructure sharing were also flagged by the auditor as reasons for these losses.
Revenue loss
BSNL's revenue loss due to non-adherence
The CAG report further stated that "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) toward infrastructure sharing charges." This statement highlights the major financial impact of BSNL's failure to comply with its agreement with Mukesh Ambani-led Jio.