₹1,757 Crore Loss for BSNL Due to Unbilled Jio Usage: CAG

The Comptroller and Auditor General of India (CAG) has flagged a massive financial oversight by Bharat Sanchar Nigam Limited (BSNL), revealing that the state-owned telecom giant failed to bill Reliance Jio Infocomm Ltd (RJIL)for the use of its passive infrastructure over a ten-year period—from May 2014 to March 2024.

According to the audit report, this lapse has led to a direct loss of ₹1,757.76 crore to the government, including penal interest and charges related to unaudited technology upgrades on BSNL’s infrastructure. Additionally, BSNL’s failure to invoke the escalation clause under the Master Service Agreement (MSA) resulted in a further ₹29 crore revenue loss, inclusive of GST.

Passive infrastructure encompasses telecom towers, shelters, power systems, and cooling units—critical assets often shared between operators. BSNL's inability to enforce billing terms within the MSA has raised concerns about institutional inefficiencies, contract management failures, and loss of public revenue.

The incident has reignited debates over market fairness and possible preferential treatment. Critics argue that BSNL’s decline and Jio’s explosive growth post-2016 are not coincidental. The revelation has led to a surge of social media backlash, with users accusing BSNL of negligence and hinting at crony capitalism benefiting private players.

CAG’s report highlights the need for:

• Robust governance frameworks in PSUs

• Automated billing and monitoring systems for infrastructure sharing

• Regular audits and accountability mechanisms

• Disciplinary actions and possible recovery from RJIL

This episode serves as a stark reminder of the importance of transparency and oversight in public-private partnerships, especially in critical sectors like telecommunications.