Telecom department rejects BSNL's plea for more compensation for services in Naxal areas 


KOLKATA: The telecom department (DoT) has dismissed Bharat Sanchar Nigam's (BSNL) demand for additional compensation of nearly Rs 589 crore for rolling out mobile networks in India's Maoist hotbeds as it would increase the final project cost well beyond the Cabinet-approved Rs 3,567.58 crore.


State-run BSNL had sought additional compensation equivalent to 16.5 per cent of the project cost to encourage its staff to work in hostile regions prone to left wing extremism. 

DoT has also rejected BSNL's demand on grounds that "the upcoming mobile network assets created in these Naxal-hit regions would be vested with the staterun telco". The Cabinet, on DoT's recommendation, had last month approved the transfer of future mobile network assets created in India's Naxal-prone zones to BSNL for ensuring uninterrupted mobile coverage even after the government stopped supporting the project after 2019.