BSNL demands Rs 1,840cr from MTNL

Bharat Sanchar Nigam (BSNL) has raised a demand for Rs 1,840 crore from Mahanagar Telephone Nigam (MTNL) towards network charges - a move that could put tremendous pressure on MTNL's financial position.

BSNL, in a letter sent to MTNL, said: "The dues from 2004-05 may kindly be paid on a quarterly basis."

"The claims is on account of network/interconnection user charges (IUC) consequent to the introduction of the IUC regime from May 2003 amounting to Rs 1,213.48 crore for 2003-04 and Rs 539.57 crore for 2004-05," the letter, written by BSNL CMD A K Sinha, said.

"No payment has been received from your organisation except the token amount of Rs 200 crore paid last year," the letter, a copy of which has also been sent to department of telecom (DoT), said.

MTNL CMD R S P Sinha, who is abroad, could not be contacted.

BSNL has also raised the issue of Rs 100 crore collected by MTNL from the Members of Parliament since 2000-01 and asked for its share.

Asked whether BSNL has given a time period to MTNL to settle the dues, BSNL officials said: "We have written a letter, and the matter is likely to be considered soon."