PAC pulls up Modi govt over unused telecom project fund

Parliament’s audit watchdog has pulled up the government for not utilising the funds generated through a levy on telecom operators for the expansion of telecom services in rural India.

The Centre has so far disbursed only 40% of the fund collected since 2002-03 under the Universal Access Levy (UAL). Government data showed ~87,500 crore has been collected but only ~39,172 crore of it has been utilised.

A Comptroller and Auditor General (CAG) report tabled in Parliament said, “The pace of expansion of services in rural India... has been very slow.”

“This indicated that the objectives of establishing the Universal Service Obligations Fund (USOF) exclusively for accelerating the growth of rural telephony were not achieved despite substantial collection of funds through Universal Access Levy (UAL),” the CAG concluded.

Private telecom operators pay 5% of their average gross revenue (AGR) from mobile services towards the USOF. The operators complained that the proportion of AGR they pay is much higher than what is mandated in other countries and demanded that the mandatory payment should be scrapped.

On Thursday, a sub-committee of Parliament’s audit watchdog, Public Accounts Committee, met to discuss the issue. Sources said finance ministry officials argued that the amount they extended for expansion of telecom services in rural India was dependent on the fund allocated for it in the Union budget.

“Money from USOF is given to BSNL. Is it in a position to utilise this money? Given their bad conditions, it is not possible to give them more funds and expect them to deliver, so the allocations are also low,” said an official.

NEW DELHI: