New Delhi, May 28: The proposed about Rs 20,000-crore financial package for Bharat Sanchar Nigam Ltd (BSNL) involving reimbursement of licence fee and spectrum charges till 2006-07 has run into rough weather with Finance Ministry raising objections over the proposal. According to Department of Telecom souces, the Finance Ministry has objected to the proposed concessions under which BSNL was to be fully reimbursed the licence fee and the spectrum fee till fiscal 2007 on account of its social obligations including rural roll-out.

"The proposal has not yet come up before the cabinet. The Finance Ministry has given its views on the matter and DoT will be persuing the proposal," sources pointed out.
When contacted, DoT secretary Vinod Vaish declined to comment on the status but said "The government has a strong commitment in rural telephony and all efforts would be made by DoT to see that the rural telephony does not suffer a setback."
Vaish said that rural telephony was a loss making proposition and it would be difficult for BSNL to raise tariffs in rural areas. Bureau Report