CAG pegs losses to DoT at Rs 145 cr

The Department of Telecommunications (DoT) has lost Rs 144.95 crore through various modes, during the four-year period up to 2004-05, according to a report by the Comptroller and Auditor General of India (CAG).

The losses were due to non-consideration of interconnectivity charges, inappropriate calculation of interests and lack of co-ordination between the wings of the department.

However, the DoT has collected total revenues of Rs 37,550.04 crore during the period, of which Rs 30,759.03 crore was collected from telecom providers. This included Rs 26,301.68 crore through licence and entry fee and Rs 3, 053.29 crore as spectrum charges.

According to the CAG, the DoT did not insist on clearance of dues while allocating additional spectrum to six operators, although they had an outstanding amount of Rs 73.94 crore against them.

BPL Cellular (Mumbai and Andhra Pradesh), Fascel (Gujarat), Bharti Cellular (Delhi, Kolkata and Mumbai) Hutch (Karnataka, Mumbai), Idea (Gujarat) and Reliance (Assam) were allocated addition spectrum, despite outstanding dues.

A failure by the DoT's Wireless Planning and Co-ordination (WPC) wing to "effectively scrutinise" annual audited accounts and reconcile them with payment made by operators also resulted in a short realisation of Rs 2.51 crore.

The DoT's inability in communicating the new financial conditions of the revenue sharing regime to MTNL on time resulted in non-levy of interest of Rs 43.51 crore.

This was to be levied for delays in payment of licence fees.

The non-consideration of inter-connectivity charges of Rs 24.95 crore by an operator while arriving at adjusted gross revenue (AGR) resulted in short payment of spectrum fees of Rs 60.76 lakh in four circles, it said.

For Bharti Infotel, in the year 2003-04, out of the total amount of rebates and discounts of Rs 70.75 crore, only Rs 2.05 crore (3 per cent) was added back to the AGR and the balance Rs 68.70 crore (97 per cent) allowed as deductions under tariff plans stated to be approved by the Telecom Regulatory Authority of India (TRAI).

Another operator Reliance Infocomm did not disclose discounts and rebates offered in the AGR statements.

The DoT has asked for details and discounts.

The inappropriate calculation of interest for delayed payment of licence fee resulted in short recovery of Rs 6.67 crore penal interest. The DoT had accepted short collection of penal interest of Rs 6.67 crore from operators and stated that cases would be re-examined.

A lack of internal co-ordination between the licensing finance (LF) wing and the wireless planning finance (WPF) wing resulted in short remittance of spectrum charges of Rs 17.72 crore.

The LF wing did not intimate the WPF wing of the changes in spectrum allocation and charges in the AGR.