The Comptroller and Auditor General (CAG) of India has revealed that the government incurred a loss of Rs 1,757.56 crore due to state-run telecom firm Bharat Sanchar Nigam Limited (BSNL) failing to bill Reliance Jio for a decade under their passive infrastructure sharing agreement. The lapse, which dates back to May 2014, was disclosed in a report released on April 1, 2025.
According to the CAG, BSNL did not enforce the Master Service Agreement (MSA) with Reliance Jio Infocomm Ltd (RJIL) and failed to charge for the additional technology utilised on its shared passive infrastructure. This oversight led to substantial financial losses for the government exchequer from May 2014 to March 2024.
Additionally, BSNL suffered a separate loss of Rs 38.36 crore as it neglected to deduct the licence fee share from the revenue paid to Telecom Infrastructure Providers (TIPs). The CAG also flagged short billing in infrastructure sharing charges, stating that BSNL's non-adherence to MSA terms and failure to apply the escalation clause resulted in a revenue shortfall of Rs 29 crore, including GST.
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The report underscores significant lapses in financial oversight and contractual enforcement by BSNL, raising concerns over revenue management in the state-owned telecom sector. Authorities are expected to take corrective action to prevent similar issues in the future.
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