A recent audit by the Comptroller and Auditor General (CAG) has revealed that state-owned telecom operator BSNL suffered a revenue loss of ₹1,757 crore after failing to raise bills for infrastructure shared with Reliance Jio over several years. The findings have raised fresh questions about the management of public-sector assets and revenue recovery mechanisms within the telecom sector.
The audit report examined agreements between BSNL and Reliance Jio relating to the use of telecom infrastructure, including passive network assets such as towers and fibre connectivity.
What the CAG Found
According to the audit report, BSNL did not adequately bill Reliance Jio for the use of infrastructure provided under agreements signed between the two companies. The lapse resulted in a cumulative revenue loss of ₹1,757 crore for the government-owned telecom operator.
The CAG noted that despite providing access to its infrastructure, BSNL failed to ensure timely billing and recovery of dues, leading to substantial financial implications for the public exchequer.
Infrastructure Sharing Agreement Under Scrutiny
Telecom infrastructure sharing has become a common industry practice, allowing operators to reduce costs and expand network coverage efficiently. Under such arrangements, companies share assets such as mobile towers, fibre networks, and transmission facilities while paying agreed usage charges.
The audit report highlighted deficiencies in the implementation and monitoring of these agreements, pointing out that billing processes were not carried out effectively despite the commercial value of the infrastructure being utilised.
Impact on BSNL’s Finances
The findings come at a time when BSNL is undergoing a major revival and modernisation programme backed by the central government. The company has received multiple financial support packages in recent years to strengthen its network, roll out 4G services, and improve competitiveness in the telecom market.
A revenue loss of this magnitude could have contributed significantly to the company’s financial resources, particularly as it invests heavily in network expansion and technology upgrades.
Questions Over Revenue Recovery
The audit observations have also sparked discussions about accountability and governance within public-sector enterprises. Experts believe stronger monitoring systems and automated billing mechanisms are needed to prevent such lapses in future infrastructure-sharing agreements.
The report underscores the importance of regular audits, contract management, and transparent revenue tracking, especially in sectors where public assets are shared with private operators.
Telecom Sector Continues to Evolve
India’s telecom industry has witnessed rapid consolidation and infrastructure sharing over the past decade. As operators increasingly collaborate to optimise network costs, efficient management of commercial agreements has become crucial.
The CAG findings serve as a reminder that while infrastructure sharing can benefit the industry, robust oversight and timely revenue collection are essential to ensure that public-sector entities receive their rightful dues.
As BSNL continues its transformation efforts and expands its network footprint, addressing audit observations and strengthening internal processes will be critical for improving operational efficiency and financial performance.
Summary
A CAG audit has revealed that BSNL lost ₹1,757 crore in revenue after failing to bill Reliance Jio for the use of shared telecom infrastructure. The report highlights shortcomings in contract management and revenue recovery processes. The findings come as BSNL undergoes a major government-backed revival programme, placing renewed focus on accountability and efficient management of public-sector assets.
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