Lok Sabha Question No. 477 (UNSTARRED), answered on 2025-07-23
Subject: Issues related to BSNL
Ministry: COMMUNICATION
Asked by: Ms. Praniti Sushilkumar Shinde

## GOVERNMENT OF INDIA MINISTRY OF COMMUNICATIONS DEPARTMENT OF TELECOMMUNICATIONS

## LOK SABHA UNSTARRED QUESTION NO. 477 ANSWERED ON 23 RD  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.

## Annexure - A of Lok Sabha Unstarred Question No. 477 for 23.07.2025

| Report No   | Para No.    | Brief                                                                                            |   Amount involved (in Rs. Crores.) |
|-------------|-------------|--------------------------------------------------------------------------------------------------|------------------------------------|
| 1 of 2025   | 5.1         | Under billing in sharing of Passive infrastructure by BSNL                                       |                            1757.76 |
|             | 5.2         | Wasteful expenditure on idling of higher size PIJF cables in BSNL                                |                              80.64 |
|             | 5.3         | Loss due to non-deduction of License Fee by BSNL                                                 |                              38.36 |
|             | 5.4         | Short billing of passive infrastructure sharing charge by BSNL                                   |                              29    |
|             | 5.5         | Loss due to non-availing of GST Input Tax Credit                                                 |                               5.43 |
|             | 5.6         | Non-realization of contractual dues                                                              |                               4.8  |
| BSNLTotal   | BSNLTotal   | BSNLTotal                                                                                        |                            1915.99 |
|             | 5.7         | Loss of revenue and blocking of funds due to poor project management and undue benefits to RVPL. |                              28.93 |
| Grand Total | Grand Total | Grand Total                                                                                      |                            1944.92 |

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