The Ministry of Finance opposes DoT?s proposal to provide a Rs 58 billion subsidy to BSNL -

The Ministry of Finance has opposed the Department of Telecommunications? (DoT) proposal to provide a Rs 58 billion subsidy to Bharat Sanchar Nigam Limited (BSNL), say news reports.

The operator had requested for a subsidy to expand its services in naxal affected areas.

It is believed that the Ministry of Finance has objected to the proposal, on grounds that the subsidy amount far exceeds the current incentives extended to BSNL. As per the Ministry, in so far, about Rs 2.11 billion in subsidies have been provided to the operator from the Universal Services Obligation (USO) Fund until March 31, 2011. These funds were to be used by the operator to set up and maintain 7,296 towers and 15,407 base transceiver stations.

Also, the Ministry has stated that the subsidy is not required as BSNL was not selected for the project via a competitive route.

The Ministry of Finance opposes DoT?s proposal to provide a Rs 58 billion subsidy to BSNL

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