CAG’s Rs 1,757.76-crore BSNL loss estimate from RJIL deal misinterpreted, rectified: MoS Telecom

New Delhi: The Government on Thursday said that the Comptroller and Auditor General’s (CAG) estimate of revenue loss in a deal between Bharat Sanchar Nigam Limited (BSNL) and Reliance Jio Infocomm Limited (RJIL) was based on a misinterpretation of contractual provisions and has now been rectified.

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Responding to a question in the Rajya Sabha, Minister of State for Communications Pemmasani Chandra Sekhar said that there has been no revenue loss to BSNL or the Government.

The Comptroller and Auditor General of India (CAG), in a report released last year, had stated that BSNL failed to enforce the Master Service Agreement (MSA) with RJIL and did not bill the company for additional technology deployed on BSNL’s shared passive infrastructure. According to the audit report, this had resulted in a revenue loss of Rs 1,757.76 crore along with penal interest between May 2014 and March 2024.

Clarifying the issue, the minister said BSNL has an MSA with RJIL for leasing tower infrastructure to install telecom equipment. He added that the audit estimate arose due to a misinterpretation of the clause related to add-on technology, which has now been corrected in a transparent and equitable manner.

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“There is no revenue loss to BSNL and the government. The estimate of CAG was based on misinterpretation of the clause of add-on technology, which has now been rectified,” Sekhar said.

Following the clarification, BSNL has raised revised invoices to RJIL, the minister informed.

He also said that steps have been taken to recover dues, resolve ambiguity in agreement clauses, monetise surplus inventory and issue revised demands, while ensuring such lapses do not recur in the future.

Further, public sector undertakings have been advised to process bills in a timely manner and exercise greater caution while taking policy or business decisions, he added.

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