CAG pulls up tele PSUs

Three state-owned telecom companies "" Bharat Sanchar Nigam Ltd, Mahanagar Telecom Nigam Ltd and Indian Telephone Industries "" have suffered revenue losses to the tune of Rs 527.52 crore during 2004-05 due to various factors such as non-recovery of dues and unproductive expenditure.

BSNL's losses were to the tune of Rs 405 crore, followed by ITI with Rs 66.89 crore and MTNL with Rs 55.50 crore, according to a latest report of the Comptroller and Auditor General (CAG).

"BSNL has failed to safeguard its financial interests by not obtaining appropriate bank guarantees from the ISD operators as per the pact," the CAG report said and also delayed disconnection of point of interconnection between October 2003 and April 2005 of Data Access (India) Ltd, resulting in non-realisation of inter-connection charges of Rs 219.62 crore," the CAG report said.

On the cellular mobile segment, non-collection of revenue from cellular mobile subscribers stood at Rs 41.82 crore, it said.

With regard to MTNL, the CAG report said it had incurred "infructuous expenditure" and "avoidable expenditure" of Rs 49 crore and Rs 6.50 crore respectively.

"The company (MTNL) invested surplus funds of Rs 100 crore in another PSU "" Indian Telephone Industries (ITI) which was incurring losses since 2001-02 in contravention of department of public enterprises (DPE) guidelines," the report said, adding that the dividend of Rs 17.50 crore for the years 2002-03 and 2003-2004 was also not paid by ITI. The CAG also pulled up MTNL for blocking capital purchase of land.

ITI suffered financial irregularity of Rs 66.89 crore mainly on account of idle and irregular expenditure and loss or overpayment, the report added.