No revenue loss from infra sharing with Reliance Jio: BSNL

Bharat Sanchar Nigam (BSNL) has refuted the Comptroller and Auditor General's finding that the state-run telecom operator's failure to bill Reliance Jio Infocomm for passive infrastructure sharing had cost the government ₹1,757.8 crore. BSNL said it is preparing a response to the Department of Expenditure (DoE) to this effect.

"There is no revenue loss to BSNL," the telco said in an emailed response to ET's queries, adding that "previous demand and therefore loss (of ₹1,757.8 crore) had been erroneously overestimated due to misrepresentation and application of the clause for add-on components."

The telco, in its response to the DoE, is likely to submit that it had at telecom circle levels raised invoices to Reliance Jio for ₹108 crore, and is pursuing with the telecom market leader to collect this amount that was in addition to the regular base rental it had been paying. BSNL is likely to submit its response to the government later this month after getting the necessary approvals from officials.

In a recent report, the Comptroller and Auditor General said BSNL had failed to enforce the master service agreement with Reliance Jio and did not bill the private telecom operator for the additional technology used on BSNL's shared passive infrastructure. This had resulted in a "loss of ₹1,757.8 crore and penal interest thereon" between May 2014 and March 2024 to the government exchequer, the government auditor said.