BSNL's Billing Failure Might Cost Massive Loss of INR 1757 Crore to the Government

In accordance with their agreement on passive infrastructure sharing, Bharat Sanchar Nigam Limited (BSNL) has allegedly failed to bill Reliance Jio for ten years since May 2014. This has cost the government a loss of around INR 1757.56 crore. The Comptroller and Auditor General of India (CAG) said last week that BSNL's invoicing issues caused the government to suffer this large financial loss. According to a news agency, the CAG audit also asserts that BSNL lost an extra INR 38.36 crore. This happened because it failed to deduct the licence fee portion from the money given to telecom infrastructure providers (TIPs).

CAG Report Highlighted BSNL’s Negligence

BSNL's failure to enforce the Master Service Agreement (MSA) with Reliance Jio Infocomm Ltd (RJIL) was brought to light in the CAG statement. According to the report, BSNL did not bill for the new technology used on BSNL's shared passive infrastructure and did not enforce the Master Service Agreement (MSA) with M/s Reliance Jio Infocomm Ltd (RJIL). From May 2014 to March 2024, the government exchequer lost INR 1,757.76 crore as a result of this incompetence, plus penal interest. Additionally, BSNL's billing errors for passive infrastructure sharing charges were brought to the attention of the CAG. The audit further stated that BSNL lost INR 29 crore (including GST) in revenue from infrastructure sharing costs. This is a result of its failure to apply the escalation clause and adhere to the terms and circumstances outlined in the MSA with RJIL.

Dilip Buildcon JV Gets Work Order Worth INR 2,631 Cr. from BSNL

An advanced work order of INR 2,631.14 crore was given to Dilip Buildcon's joint venture, DBL-STL, by Bharat Sanchar Nigam Ltd (BSNL). The middle-mile network for the BSNL BharatNet Phase-III broadband connectivity project will be designed, supplied, built, installed, upgraded, operated, and maintained by the company. The Universal Service Obligation Fund (USOF), now known as Digital Bharat Nidhi (DBN), is providing funding for the initiative. The project, of which Dilip Buildcon is responsible for 70.23%, is to offer middle-mile and last-mile connectivity in the Jammu & Kashmir and Ladakh regions. The construction project will be completed in three years by the Bhopal-based company, and the maintenance contract will last for ten years.

In addition, Dilip Buildcon works on projects in a number of industries, such as urban development, irrigation, tunnels, roads, railroads, airports, and coal mining. With the support of earnings from its coal and hybrid annuity model (HAM) portfolio, Dilip Buildcon's profit attributable to owners for the third quarter of the fiscal year 2025 (Q3 FY25) increased by 7.4% year over year to INR 115.3 crore. However, the company's revenue dropped to INR 2,589.7 crore, a 9.98% year-over-year decrease. Its overall costs for the reviewed quarter were INR 2,519 crore, which was an 11.9% decrease from the previous year.