BSNL gets even with finance ministry

Move follows ministry's rejection of financial package

Bharat Sanchar Nigam Ltd (BSNL) has got back at the finance ministry by refusing to part with details of its subscriber base.

The Central Board of Direct Taxes (CBDT) had sought information from BSNL for tracking income-tax declarations made by individuals and corporates.

The move comes after the finance ministry had shot down a number of proposals from the public sector unit, including one that sought a financial support of Rs 18,000 crore spread over five years for rural telephony and reimbursement of licence fees.

This prompted Communications Minister Arun Shourie to take the issue to the Union Cabinet.

BSNL officials pointed out that information about subscribers was sensitive and no company would be prepared to make it public for fear of misuse.

The officials said Shourie had taken up this issue also with Finance Minister Jaswant Singh. "We have sought a direction from the finance minister to the CBDT for not demanding across-the-board information on telephone subscribers," an official said.

BSNL officials, however, said the two issues were not linked, but sources in the communications ministry said there was strong resentment within the telecom department.

The officials added that BSNL was facing technical and commercial difficulties in furnishing subscriber details without taking permission from consumers.

"A reason for the decline in new additions to our subscriber base is the mandatory requirement of filing income-tax returns. If BSNL is asked to divulge details of its subscribers, there will be more disconnections. Given its declining revenues, BSNL can ill afford such a situation," one of the officials explained.

Tit for tat

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BSNL seeks Rs 18,000 crore financial package from finance ministry

Finance ministry rejects the proposal

Arun Shourie decides to take up the matter with the Union Cabinet

CBDT asks for information on BSNL subscribers for tracking I-T returns

BSNL refuses to part with information; says consumers will dump phones if details given