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Department of Telecommunications (DoT) gives a proposal to provide Rs. 5800 crore to Bharat Sanchar Nigam Limited (BSNL), according to news reports this proposal is opposes by “Ministry of Finance”.
The operator (BSNL) had requested for a financial support to spread out its services in naxal affected areas.
It is supposed that the Ministry of Finance has opposes the suggestion, on basis that the subsidy amount go beyond the present incentives extended to BSNL. As per the Ministry, in so far, about Rs 211 crore in subsidies have been provided to the state run operator from the Universal Services Obligation (USO) Fund until March 31, 2011. These funds were to be used by the operator to set up and maintain 7,296 towers and 15,407 base transceiver stations.
Also, the Ministry has declared that the subsidy is not necessary as BSNL was not selected for the project via a competitive route.
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