BSNL demands government to pay Rs 99 crore reimbursement due to delay from TCS

State-run telecom company Bharat Sanchar Nigam Limited (BSNL), which has been facing difficulties for the past few years, has sought reimbursement of Rs 99 crore from the central government. This request has been made due to the delay in the delivery and installation of Evolved Node B equipment of a consortium led by Tata Consultancy Services (TCS).

The consortium also includes the Centre for Development of Telematics (C-DoT) and Tejas Networks. A media Report The letter, written by BSNL’s General Manager (NWP-SP), Reena Malhotra, said that TCS has delayed the installation of core equipment in four zones. This has led to the postponement of commissioning of sites in the 4G saturation project. BSNL has argued that it is going ahead with the installation of towers and passive infrastructure. The company has requested the Department of Telecommunications (DoT) to consider it an ‘exceptional case’ and compensate BSNL for the additional cost.

BSNL has demanded reimbursement of about Rs 99 crore. About two years ago, the central government approved a project worth Rs 26,316 crore for 4G mobile services in villages without coverage. Funding for this project is being provided from USOF. In the last financial year, BSNL’s net loss has come down to Rs 5,367 crore. In the previous financial year, the company’s net loss was Rs 8,161 crore. Reduction in expenses and increase in non-operating income are the major reasons behind the reduction in its loss. BSNL’s revenue from operations increased marginally to Rs 19,343.6 crore. However, it was less than the target of Rs 20,000 crore set by the central government.

The company’s revenue from cellular services and enterprise segment has decreased in the last financial year. Its expenses decreased by about 2.5 percent to Rs 26,683 crore. However, the company’s employee cost increased by 4.4 percent to Rs 8,034 crore. BSNL is facing tough competition from private telecom companies. It is launching its 4G service. Big private telecom companies like Bharti Airtel and Reliance Jio have started their 5G network across the country. Due to this, the number of subscribers of these companies has also increased rapidly.