BSNL's dues are piling up: CAG

Public sector telecom firm Bharat Sanchar Nigam Ltd has suffered a loss of Rs 1,186 crore in 2002-03 due to various irregularities, the Comptroller and Auditor General of India has said in a report.

BSNL has also been pulled up by CAG for incurring arrears of Rs 2,684 crore because of non-collection of bills for its telephone services.

The CAG has also pulled up Mahanagar Telephone Nigam Ltd for its unsatisfactory performance in the cellular services sector. Financial implications because of irregularities in MTNL stands at Rs 354 crore.

"BSNL should review and strengthen its planning mechanism and enhance co-ordination between the heads of maintenance regions and the heads of the project wings. BSNL should also introduce a uniform method for claiming and recovery of compensation for the cost of repair, loss of revenue and goodwill," the report has said. BSNL's arrears have, however, come down from Rs 3,608 crore in 2001-02.

Of the Rs 1,186 crore irregularity in BSNL, loss or over-payment at the instance of audit account for Rs 739 crore. Infructuous expenditure accounts for Rs 109 crore and idle expenditure Rs 127 crore.

The number of consumers on the waiting list has also increased 10 per cent to 1,800,000 in 2003 compared with 1,600,000 in 2002.

However, the number of village telephones have increased 4 per cent during the period. Profit after tax from BSNL has dipped to Rs 1,444 crore in 2003 compared with Rs 6,312 crore in 2002.

The number of employees has also increased from 349,000 to 356,000 but the number of employees per thousand lines has dipped from 13 in 2000-01 to 10 in 2002-03. BSNL has also been indicted for giving a supply order of Rs 37 lakh to a blacklisted company.

Revenue arrears for MTNL stands at Rs 1,601 crore in 2002-03 compared with Rs 1,683 crore in the previous year. CAG has pointed out this is despite an order from high court to recover the dues.

The CAG has pulled also up MTNL for failure in initial planning of its cellular network, deficiencies in billing system, and fraudulent bookings by franchisees, which have resulted in a loss of Rs 31 crore. This is fourteen times higher than the previous year's figures.