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Govt Loses ₹1,757 Crore as BSNL Fails to Bill Reliance Jio: CAG Report

Written by: Kusum KumariUpdated on: Apr 3, 2025, 2:09 PM IST
BSNL failed to bill Reliance Jio for a decade, causing a ₹1,757 crore loss, says CAG. Additional lapses led to further financial setbacks for the state-run telecom firm.
Govt Loses ₹1,757 Crore as BSNL Fails to Bill Reliance Jio: CAG Report
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The Comptroller and Auditor General (CAG) of India reported on April 1, 2025, that the government suffered a loss of ₹1,757.56 crore after Bharat Sanchar Nigam Limited (BSNL) failed to bill Reliance Jio for infrastructure sharing over a decade.

10 Years of Unbilled Services

BSNL did not enforce its Master Service Agreement (MSA) with Reliance Jio Infocomm Ltd (RJIL) and failed to charge for additional technology used on its shared passive infrastructure. This resulted in revenue losses of ₹1,757.56 crore, including penal interest, from May 2014 to March 2024.

More Revenue Losses

The CAG report also pointed out that BSNL lost another ₹38.36 crore by not deducting its share of the license fee from payments made to Telecom Infrastructure Providers (TIPs). Additionally, the company underbilled Reliance Jio for infrastructure sharing charges, leading to a further loss of ₹29 crore (including GST).

Financial Mismanagement Raises Concerns

The findings reveal serious lapses in BSNL’s financial management and contract enforcement, highlighting ongoing revenue leakages in the state-owned telecom sector. With concerns mounting, industry experts believe this could result in tighter oversight of BSNL’s agreements and policies to prevent further losses. The government has yet to respond to the CAG’s observations.

Conclusion

The CAG report highlights BSNL’s financial mismanagement and revenue leakages. Experts suggest stricter oversight and policy reforms to prevent such losses in the future.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Published on: Apr 3, 2025, 2:09 PM IST

Kusum Kumari

Kusum Kumari is a Content Writer with 4 years of experience in simplifying financial market concepts. Currently crafting insightful content at Angel One, She specialise in breaking down complex topics into easy-to-understand pieces, blending expertise in market fundamentals and technical analysis.

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