NEW DELHI: A Comptroller and Auditor General (CAG) report has flagged Airtel for delays in a public project and noted that the government failed to strictly enforce penalties, leading to incomplete work and financial loss.
According to the report released on Thursday, Airtel failed to complete 756 planned mobile tower sites on time, with only 431 operational by April 2021. Even after revising the target to 562 sites, 124 sites remained incomplete as of April 2025.
Due to these delays, penalties such as Liquidated Damages (LD) and Non-Performance Penalty (NPP), totaling ₹19.47 crore, were imposed. However, the government recovered only ₹10.98 crore, leaving ₹8.49 crore unpaid.
Bharti Airtel Ltd. was assigned the project under the Digital Bharat Nidhi to provide mobile connectivity in remote areas of Assam and Sikkim. The agreement, signed in 2017, required completion by June 2019, but deadlines were repeatedly extended to October 2020.
The report also highlighted serious irregularities in the management of telecom tower assets by Bharat Sanchar Nigam Limited (BSNL) during 2018–19 to 2022–23.
According to the audit, BSNL failed to maintain proper ownership records, with 36% of land parcels used for towers not registered in its name. Additionally, 27% of leased sites continued operations despite expired agreements.
The audit further pointed to poor utilisation of resources.
Materials worth ₹59.77 crore remained unused, while 81 towers valued at ₹11.13 crore lay idle for up to seven years. Delays in installing essential equipment led to a revenue loss of ₹6.22 crore, and failure to hand over over 1,000 sites on time caused an additional loss of ₹10.87 crore.
Moreover, 1,740 tower sites remained non-functional for extended periods, some for up to 16 years, representing missed opportunities for revenue generation. Weak billing practices further worsened the situation, resulting in non-recovery of dues, including unpaid fees and rental charges.