The Department of Telecom (DoT) has rejected Bharat Sanchar Nigam Limited's (BSNL) demand for additional funds of about Rs 5.89 billion for deploying mobile networks in the regions affected by naxalities.  BSNL had earlier sought additional compensation of 16.5 per cent of the total project cost to encourage its staff to work in the naxal-affected areas.

DoT is of the view that such compensation would increase the final project cost of the project beyond the approved limit of Rs 35.67 billion. The project of BSNL for the mobile networks venture has been subsidised by the Universal Services Obligation Fund as a mandate by the central government. The fund would be used only to meet BSNL's capex needs for rolling out 1,836 tower sites and operating expenditure for 2,199 sites for five years.

Further, DoT also rejected the demand stating that the mobile network assets created in these regions would remain with BSNL as the central government has approved the transfer of these mobile network assets to BSNL for ensuring uninterrupted mobile coverage after 2019, when the government would stop supporting the project.

BSNL was mandated in 2013 to establish mobile connectivity in naxal-affected regions in Andhra Pradesh, Chhattisgarh, Jharkhand, Odisha, Bihar, Maharashtra, Madhya Pradesh, West Bengal and Uttar Pradesh to improve communications and home ministry surveillance operations.