Editorial – August 2022

We reveal cartelization and violation of integrity pacts in BSNL’s tender for comprehensive maintenance of fiber cable network created under BharatNet Phase-I network. BSNL had floated a tender covering 501,722 kms of fiber and 121,299 gram panchayats (GPs) which included routine maintenance of existing fiber, replacing the bad/ untraceable fiber, and first line maintenance (FLM) of Gigabit Passive Optical Network (GPON) equipment. Two categories A & B were made and coverage expanse was divided into 13 packages with 8 packages under category-A, and 5 packages under category-B. A company could get a maximum of five packages subject to a further cap of 3 packages each in category-A and category-B. Twenty one companies participated in the bid.

Our investigations reveal undue favours to Pratap Group which was allowed to submit multiple bids. Just by looking at the quotes, it is clear that the group synchronised bids with its other client companies. It also exposes major ambivalence and overall opacity on part of BSNL in giving important details in the tender specifications.

The BharatNet project is central to the Digital India vision of Prime Minister Narendra Modi. It has gone through many births and rebirths. Every rebirth has promised performance and completion only to lead to another one. A decade into the project, everything has been tried. It started with a CPSU led model, then BBNL was created, thereafter state led model was invented, then the project was outsourced to CSC E-Governance, and the latest is the PPP led model which has failed to attract any bidder. In the interim BBNL has been merged with BSNL, while the maintenance of assets created so far under BharatNet has been entrusted to BSNL and is being bankrolled by the cash-rich Universal Service Obligation (USO) Fund.

BSNL is high on government bailouts and abysmal in performance, something which was acknowledged by the telecom minister in his ‘perform or perish’ lashing to BSNL officials. On July 27, 2022 the cabinet approved another mega Rs 1.64 lakh crore bailout package plus gave a project worth Rs 23,641 crore for the implementation of 4G services in uncovered villages and for upgradation from 2G/3G services to 4G. Earlier in October 2019, a Rs 69,201 crore package was given to BSNL and MTNL.