The government suffered a loss of Rs 1,757.56 crore after state-owned telecom firm Bharat Sanchar Nigam Limited (BSNL) failed to bill Reliance Jio for a decade, as per their agreement on passive infrastructure sharing, the Comptroller and Auditor General (CAG) of India reported on Tuesday (April 1, 2025).
10 Years of Unbilled Services
According to the CAG, BSNL did not enforce its Master Service Agreement (MSA) with Reliance Jio Infocomm Ltd (RJIL) and failed to charge for the additional technology used on its shared passive infrastructure. This resulted in a financial setback of Rs 1,757.56 crore, along with penal interest, between May 2014 and March 2024.
Additional Revenue Losses
The report further highlighted that BSNL suffered an additional loss of Rs 38.36 crore by not deducting the share of the licence fee from the revenue paid to Telecom Infrastructure Providers (TIPs). The state-owned firm also underbilled Reliance Jio for infrastructure sharing charges.
“Non-adherence to the terms and conditions laid down in the MSA with RJIL by BSNL and non-application of the escalation clause resulted in a loss of revenue of Rs 29 crore (including GST) towards infrastructure sharing charges,” the CAG statement noted.
Lack of Compliance Raises Concerns
The findings expose serious lapses in BSNL’s financial management and contract enforcement, raising concerns over revenue leakages in the state-run telecom sector. The government has yet to respond to the CAG’s observations.
With the report highlighting long-term financial mismanagement, industry experts believe this could lead to stricter oversight on BSNL’s agreements and operational policies to prevent further losses.