The Comptroller and Auditor General of India’s (CAG) estimate that the government suffered a revenue loss due to non-implementation of an agreement with Reliance Jio was based on a misinterpretation of a clause, and the error has since been rectified, as per minister of state for communications.
In a report last year, the CAG had said that state-run firm Bharat Sanchar Nigam Limited (BSNL) failed to enforce its master service agreement (MSA) with Reliance Jio Infocomm Limited (RJIL) and did not bill for additional technology used on BSNL’s shared passive infrastructure. This, the CAG said, resulted in a loss of Rs 17.57 billion, along with penal interest, to the government exchequer between May 2014 and March 2024.
The minister said BSNL holds an MSA with RJIL for leasing its tower infrastructure to install equipment. As per the minister, steps have been taken to recover losses, resolve ambiguity in agreement clauses, monetise surplus inventory, issue revised demands, and prevent a recurrence of lapses in BSNL’s functioning.
