Former Telecom Secretary Uncovers Major BSNL Scam and Re-evaluates 2G Losses
In his recently released memoir, I Dared to Dial Differently, former Telecom Secretary JS Deepak has made significant revelations concerning his tenure, including blocking a massive procurement scam at BSNL and challenging the official figures for the 2G spectrum allocation loss. Deepak, an IAS officer from the 1982 batch, served as Secretary, Department of Telecommunications, from February 2016 to March 2017, and his book offers a rare inside look into the workings of the Indian government.
Preventing an Rs 8,000 Crore BSNL Procurement Scandal
Deepak recounts a critical incident at Bharat Sanchar Nigam Limited (BSNL) where he, along with other government directors on the BSNL board, intervened to halt a "wasteful procurement" bid that could have escalated into an Rs 8,000 crore scam. The procurement involved over Rs 30,000 crore worth of telecom equipment, controversially being pursued through a single vendor after other major international suppliers were disqualified. Deepak highlighted that the rules for negotiating with single bidders, as stipulated by the Central Vigilance Commission (CVC), were not followed, and much of the equipment was unnecessary or overpriced compared to previous contracts.
His decisive action, despite potential repercussions, ultimately prevented the financial loss. The CVC and the Sam Pitroda committee later validated the correctness of their intervention, underscoring the challenges civil servants face when protecting public interest against internal pressures.
Challenging the Official 2G Spectrum Loss Figures
The memoir also delves into the infamous 2G spectrum auction case, where Deepak contests the Comptroller and Auditor General's (CAG) estimated loss of Rs 1.76 lakh crore to the exchequer. He argues that the CAG's methodology, which compared the price of 2G spectrum with 3G spectrum based solely on megahertz quantity, overlooked a crucial qualitative difference. According to Deepak, the 2G spectrum in the lower-frequency 1800-megahertz band was of superior quality compared to the 2100- and 2300-megahertz bands auctioned for 3G. By accounting for this qualitative aspect, Deepak suggests the actual loss would have been significantly higher, exceeding Rs 2 lakh crore.
Manmohan Singh's Unheeded Stance on 2G Pricing
Deepak's book further sheds light on the internal disagreements within the government regarding the 2G spectrum pricing. He reveals that then-Prime Minister Manmohan Singh and the Finance Ministry advocated for a higher price for the spectrum, reflecting the substantial increase in telecom users from 10 million in 2001 to 350 million in 2008. However, their suggestions to the Department of Telecommunications were not enforced, leading to the spectrum being allotted at outdated 2001-02 prices on a "first-come-first-serve" basis—a decision that ultimately triggered the scam.
The "No Good Deed" Principle in Government Service
Throughout his memoir, Deepak highlights a recurring theme he provocatively titles "no good deed in government goes unpunished." He reflects on instances where civil servants, despite taking principled stands that benefit the public, often face inquiries or career setbacks. This perspective offers a candid look at the institutional hurdles and personal sacrifices involved in maintaining integrity within India's administrative framework.