DoS undercharged, reduced price of transponders for Sun Direct: CAG

  • Thread starter Thread starter Bishnu15
  • Start date Start date
  • Replies Replies: Replies 1
  • Views Views: Views 1,050
Bishnu15

Bishnu15

Contributor
Joined
7 Apr 2012
Messages
16,629
Reaction score
10,449
MUMBAI: The Department of Space (DoS) has undercharged and also reduced the price of Ku-band transponders for direct-to-home (DTH) operator Sun Direct. This has triggered a loss of Rs 3.4 crore (Rs 34.09 million), the Comptroller and Auditor General (CAG) pointed out in its report on the management of satellite capacity for DTH service by DoS. Kalanithi Maran-promoted Sun Direct was also given an additional bonus free time by DoS, which resulted in a further unintended benefit of Rs 3.56 crore (Rs 35.6 million) to the DTH operator. CAG said that DoS entered into an agreement with Sun Direct for the lease of four transponder units in INSAT 4B satellite in February 2005. Subsequently, it decided in February 2007 to lease additional 2.25 transponders to Sun Direct and charge for only six transponders at the rate of Rs 4.75 crore (Rs 47.5 million) per transponder against 6.25 transponders. DoS reasoned that the undercharging was on the ground that Sun Direct had agreed for leasing with the condition that they would be charged only for six transponders. “The justification was, however, not acceptable as DoS leased 6.25 transponders to the firm. Undercharging of transponders resulted in a loss of Rs 2.94 crore (Rs 29.4 million) over the period from 15 January 2008 to 6 July 2010,” CAG said in its report. The audit further observed that without citing any reason, DoS also reduced the price of these transponders with effect from January 2010 to Rs 4.70 crore per transponder, resulting in the loss of another Rs 46.92 lakh (Rs 4.69 million) to DoS. Bonus free period The agreement entered between DoS and Sun Direct provided that the customer was permitted free access to the capacity 60 days prior to and three months after the start of the lease period as an early bid incentive to the customer. DoS, however, allowed bonus free period of 1.5 months after the permitted three months time to Sun Direct. “The additional free time was allowed in lieu of the delay in getting operational approvals required for providing the DTH service. Since obtaining operational approvals was the responsibility of the customer, the additional bonus free time resulted in unintended benefit of Rs 3.56 crore (Rs 35.6 million) to Sun Direct,” CAG observed. Incidentally, DoS stated in March 2014 that the decision was taken by the standing committee which was empowered to take the decision. However, CAG did not find it acceptable since the committee was only mandated to establish the minimum price for each type of transponders and was not mandated to extend bonus free time for usage of transponders.

Read more at: DoS undercharged, reduced price of transponders for Sun Direct: CAG | TelevisionPost.com | TelevisionPost.com
 
Culprits..:D

Political power misused to excel in their business.

And vice-versa..

If they aren't punished or controlled now, then never in future..:dodgy
 
Back
Top Bottom