Excess subsidy paid to BSNL and RIL: CAG

West Bengal and UP East circles paid excess subsidy of Rs 2.17 crore to Reliance Infocomm (RIL) and BSNL for providing rural community phones (RCP) during March 2005 to December 2010, the Comptroller and Auditor General (CAG) report has said.

New Delhi: West Bengal and UP East circles paid excess subsidy of Rs 2.17 crore to Reliance Infocomm (RIL) and BSNL for providing rural community phones (RCP) during March 2005 to December 2010, the Comptroller and Auditor General (CAG) report has said.

"An amount of Rs 2.17 crore was paid in excess...To RIL and BSNL in respect of 836 RCPs though public call offices existed in these villages," the CAG report tabled in Parliament on Thursday said.

However, after being pointed out by CAG, Controller of Communications Accounts (CCA), West Bengal circle, raised a claim of Rs 1.62 crore against RIL and recovered the entire amount on November 2011, it said.

The CCA, UP East circle stated that the matter on excess subsidy was being investigated, CAG said.

It added the matter was referred to Department of Telecom (DoT) in January 2012 and a reply was awaited as of May 2012.

As per the provision, a RCP is to be installed in a village with a population of over 2000 as per the 1991 census and where no public call office (PCO) existed.

The CAG said agreements were formed with BSNL and RIL in 2004 for provision of 46,253 RCPs in different service areas.

However, on scrutiny it was found that 836 RCPs were installed in villages which already had PCOs.

Of these villages, 595 were in West Bengal circle and 241 in UP East circle.

The net cost for installing RCPs is reimbursable from the Universal Service Obligation fund (USOF).

PTI

Zee News App: Read latest news of India and world, bollywood news, business updates, cricket scores, etc. Download the Zee news app now to keep up with daily breaking news and live news event coverage.