Pay Rs 1,753 cr, BSNL tells MTNL

Bharat Sanchar Nigam Ltd (BSNL) has demanded that Mahanagar Telephone Nigam Ltd (MTNL) pay Rs 1,753 crore towards network charges since 2000-01.

BSNL had sent a written communique to MTNL requesting that the latter settle its dues at the earliest, while adding that "dues for 2004-05 may be paid on a quarterly basis", executives said.

The company has also raised the issue with the Department of Telecommunications and a copy of the letter has been sent to the government too.

"The claims on account of network interconnection user charges (IUC) consequent on introduction of IUC regime from May, 2003 amount to Rs 1,213.48 crore for 2003-04 and Rs 539.57 crore for 2004-05," the letter from BSNL said.

"But no payment has been received from your organisation except the token amount of Rs 200 crore paid last year," it added.

BSNL has also said MTNL must pay a part of the Rs 100 crore it had collected from members of Parliament towards their telephone and internet expenses since 2001.

"The claims pertaining to MP's telephones have not been specified by you in your earlier communication. It is requested that the MP's telephones at constituencies from 1986 and internet connections from October 2002 onwards may have to be paid to BSNL along with necessary calculations," the letter said.

"These are not fresh demands, but ongoing issues between the two companies. We have only written to them to peruse the matter further. We feel that we have not been paid the IUC charges. The two companies will work out a settlement "" talks have been on for a while now," BSNL CMD AK Sinha told Business Standard.

MTNL executives refused to comment on the issue and said that the company would clarify its stance after its chairman and managing director, RSP Sinha, returns from his trip abroad.

BSNL executives also ruled out the possibilities of the company initiating action against MTNL if the dues were not settled immediately. "We have not fixed any particular time frame. Talks are on. We expect them to proceed faster after this reminder," BSNL executives said.