Executive Summary:
This document is the answer to Lok Sabha Unstarred Question No. 477, addressed on July 23, 2025, regarding issues related to Bharat Sanchar Nigam Limited (BSNL). It addresses concerns raised by a CAG audit highlighting lapses in contractual compliance, planning, billing, and internal controls, and details corrective measures being taken by the government. The audit period concluded in March 2023.
Key Points / Main Content:
* **CAG Audit Findings:**
* CAG report No. 01 of 2025 identified lapses in contractual compliance, planning, and billing, resulting in a cumulative financial loss of Rs. 1,944.92 Crore.
* Specific issues included under-billing in passive infrastructure sharing (Rs. 1757.76 crore), wasteful expenditure on idling of higher size PIJF cables (Rs. 80.64 crore), loss due to non-deduction of License Fee (Rs. 38.36 crore), short billing of passive infrastructure sharing charge (Rs. 29.00 crore), Loss due to non-availing of GST Input Tax Credit (Rs. 5.43 crore), Non-realization of contractual dues (Rs. 4.80 crore), Loss of revenue and blocking of funds due to poor project management and undue benefits to RVPL (Rs. 28.93 crore).
* **Master Service Agreement with Reliance Jio Infocomm Ltd. (RJIL):**
* BSNL has MSAs with RJIL for leasing tower infrastructure.
* The estimated revenue loss was based on misinterpretation of the add-on technology clause and has been rectified.
* BSNL has raised revised invoices from RJIL.
* **Procurement of PIJF Underground Cables:**
* Procurement of oversized cables was as per extant norms, but the cables could not be fully utilized due to changes in the telecom sector.
* BSNL has monetized surplus cable for Rs. 70.32 crore, with remaining cable having an estimated sale value of Rs. 23 Crore.
* **Corrective Measures:**
* Actions taken include resolving ambiguity in agreement clauses, monetizing surplus inventory, issuing revised demands, and initiating recovery processes.
* PSUs have been advised to process bills timely and exercise caution in policy/business decisions.
Impact Analysis:
* **BSNL:**
* Impact: Subject to audit findings requiring corrective action, revenue recovery, and improved internal controls.
* Action Required: Implement corrective measures, recover losses, monetize surplus inventory, and ensure timely bill processing and cautious decision-making.
* **Department of Telecommunications:**
* Impact: Responsible for overseeing BSNL's actions and ensuring compliance with guidelines and policies.
* Action Required: Monitor BSNL's progress in implementing corrective measures and preventing recurrence of lapses in BSNL and other PSUs.
* **Reliance Jio Infocomm Ltd (RJIL):**
* Impact: Subject to revised invoices from BSNL for previously under-billed services.
* Action Required: Pay the revised invoices from BSNL.
Key Entities Referenced
Bharat Sanchar Nigam Limited: A Public Sector Undertaking (PSU) under the Department of Telecommunications, referred to as BSNL.
Reliance Jio Infocomm Ltd: A telecommunications service provider, referred to as RJIL.
Comptroller and Auditor General of India: An independent authority in India, responsible for auditing government expenditure and revenue, referred to as CAG.
Master Service Agreement: A contract between BSNL and RJIL for leasing of BSNL's tower infrastructure.
PIJF underground cables: Physical infrastructure procured by BSNL.
Department of Telecommunications: The government department overseeing BSNL and other PSUs in the telecommunications sector.
Lok Sabha: The lower house of the Parliament of India.
MS. PRANITI SUSHILKUMAR SHINDE: Member of Parliament who raised the question in Lok Sabha.
GOVERNMENT OF INDIA
MINISTRY OF COMMUNICATIONS
DEPARTMENT OF TELECOMMUNICATIONS
LOK SABHA
UNSTARRED QUESTION NO. 477
ANSWERED ON 23RD JULY, 2025
ISSUES RELATED TO BSNL
477. MS. PRANITI SUSHILKUMAR SHINDE:
Will the Minister of COMMUNICATION be pleased to state:
(a) whether the Government is aware of the recent CAG audit findings highlighting serious
lapses in contractual compliance, planning, billing and internal controls by Bharat Sanchar Nigam
Limited (BSNL);
(b) if so, the details thereof including the cumulative financial loss of 1,944.92 crore incurred
due to such lapses;
(c) whether BSNL failed to enforce the Master Service Agreement with Reliance Jio Infocomm
Ltd. (RJIL), resulting in a loss of 1,757.76 crore on account of non-billing for additional technologies
used, if so, the details thereof;
(d) whether BSNL deviated from its own Procurement Manual in procuring oversized PIJF
underground cables worth 80.64 crore which remain unutilised, if so, the details thereof; and
(e) the corrective measures being taken by the Government to fix accountability, recover losses
and prevent recurrence of such lapses in the functioning of BSNL and other PSUs under the
Department of Telecommunications?
ANSWER
MINISTER OF STATE FOR COMMUNICATIONS AND RURAL DEVELOPMENT
(DR. PEMMASANI CHANDRA SEKHAR)
(a) & (b) Comptroller and Auditor General of India (CAG) in its report No. 01 of 2025 for the
year ending March, 2023 pointed out the lapses in contractual compliance, planning and billing
including the total cumulative financial loss of Rs. 1,944.92 Crore. The details of financial loss
pointed out by CAG are attached at Annexure-A.
(c) BSNL has Master Service Agreements (MSAs) with M/s RJIL, for leasing of BSNL’s tower
infrastructure to install their equipment. There is no revenue loss to BSNL and Government. The
estimate of CAG was based on the misinterpretation of the clause of add-on technology, which has
now been rectified in a transparent and equitable manner. BSNL has since raised the revised invoices
from RJIL.
(d) The procurement of higher size PIJF underground cables was as per then extant norms.
However, due to changed competitive scenario in telecom sector, the procured cable could not be
fully utilized. The surplus cable has been monetized by BSNL to the tune of Rs. 70.32 crore and the
remaining cable has a sale value of approximately Rs. 23 Crore.
(e) To recover losses and prevent recurrence of such lapses in the functioning of BSNL and other
PSUs, actions such as resolving the ambiguity in agreement clauses, monetisation of surplus
inventory, issuance of revised demands and recovery have been taken. Further, PSUs have been
advised to timely process bills and be extra cautious while taking policy/business decision.
1Annexure – A of Lok Sabha Unstarred Question No. 477 for 23.07.2025
Report Para Brief Amount
No No. involved
(in Rs. Crores.)
5.1 Under billing in sharing of Passive infrastructure by 1757.76
BSNL
5.2 Wasteful expenditure on idling of higher size PIJF 80.64
cables in BSNL
5.3 Loss due to non-deduction of License Fee by BSNL 38.36
5.4 Short billing of passive infrastructure sharing charge 29.00
1 of 2025
by BSNL
5.5 Loss due to non-availing of GST Input Tax Credit 5.43
5.6 Non-realization of contractual dues 4.80
BSNL Total 1915.99
5.7 Loss of revenue and blocking of funds due to poor 28.93
project management and undue benefits to RVPL.
Grand Total 1944.92
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