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Govt Clarifies No Loss to BSNL from RJIL; CAG’s Rs 1,757 Cr Loss Estimate Based on Clause Misinterpretation

CAG's Rs 1,757 Crore Loss Estimate Rectified, Says Minister Pemmasani Chandra Sekhar
BSNL
Indian Masterminds Stories

New Delhi: The government has clarified that the estimated Rs 1,757.56 crore loss to BSNL flagged by the Comptroller and Auditor General (CAG) in its report was based on a misinterpretation of the infrastructure-sharing agreement between BSNL and Reliance Jio Infocomm Ltd (RJIL). The issue has since been rectified, and revised invoices have been raised, the Minister of State for Telecom, Pemmasani Chandra Sekhar, informed Parliament on Wednesday.

Background: CAG’s April Report Sparked Concerns

The CAG report, tabled in Parliament in April 2024, had stated that BSNL failed to bill Reliance Jio for a period of 10 years since May 2014, for using its passive infrastructure such as towers under a Master Service Agreement (MSA). It claimed this resulted in a notional loss to the exchequer.

Government Clarification: No Loss, Clause Misread

The Minister clarified in a written reply to the Lok Sabha that- “There is no revenue loss to BSNL or the government. The estimate of CAG was based on the misinterpretation of the clause on add-on technology, which has now been rectified in a transparent and equitable manner.”

He added that BSNL has already raised revised invoices to RJIL following the correction.

Steps Taken to Prevent Future Lapses

Responding to questions on accountability and prevention of similar issues in the future, the Minister listed several corrective measures

  • Clarification of ambiguous contract clauses
  • Issuance of revised demand notes and recovery
  • Monetisation of surplus inventory
  • Advisories to PSUs to ensure timely billing and cautious decision-making on business matters

These steps aim to tighten oversight mechanisms and prevent any financial oversight or misinterpretation in future government-PSU-private sector dealings.


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