Rs 336.82 million from USO fund was diverted from 2002-03 to 2013-14, says CAG

The Comptroller and Auditor General (CAG) has stated that about Rs 336.82 million from the Universal Service Obligation (USO) fund was diverted for other purposes from 2002-03 to 2013-14. Further, against the total collection of universal access levy of Rs 585.79 billion during 2002-03 to 2013-14, disbursement of subsidy of only Rs 248.96 billion was made from the fund during these periods.

CAG also stated that the disbursement of subsidy amount also included the reimbursement of licence fees and spectrum charges to Bharat Sanchar Nigam Limited (BSNL) amounting to Rs 69.48 billion over the period 2002-03 to 2005-06 for fulfiling rural obligation.

The USO fund was set up in April 2002 and is administered by the Department of Telecommunications. The fund has been set up with an objective to provide basic telephone services in rural areas.