A dispute has arisen between Bharat Sanchar Nigam Ltd and the National Highways Authority of India over the shifting of telephone cables from national highways.

The NHAI has asked BSNL to shift the cables from the highways, falling under the 10,000-km Golden Quadrilateral project, as soon as possible. However, BSNL is refusing to bear the cost of the exercise, which it has pegged at over Rs 300 crore (Rs 3 billion).

BSNL has now asked the department of telecommunications (DoT) to seek the intervention of the committee of secretaries to resolve the matter.

The state-owned telecommunications major wants the DoT to accord top priority to the issue so that it can be taken up at the highest level.

Though BSNL had already instructed its field units to shift the cables, official sources said it was done in the hope that the amount spent would be reimbursed after the dispute was resolved.

BSNL Chairman Prithipal Singh, in a letter to Vinod Vaish, secretary, DoT, said, "You are aware of the difficulties being faced by BSNL in mustering financial resources to fund its Plan and non-Plan expenditure, including the burden of immense social obligations, in the face of reduced margins due to continuously falling tariffs."

The NHAI has also asked BSNL to shift cables from some other highways, which it plans to widen. This is expected to add to BSNL's costs.

"If the NHAI is required to move the telephone cables, why should BSNL be asked to fund it," a BSNL official asked.

NHAI officials refused to comment on specific issues relating to particular companies. However, they said the government had taken a decision on the shifting of utilities, like telecommunications and sewer lines, from near highways even before the commencement of the National Highways Development Project and the NHAI would stick to it.

However, BSNL officials said though the issue had been brought up a number of times, the government was yet to take a decision on it.

As the PSU's financial burden was increasing, it could not afford to spend on an exercise that would not result in any returns, they added.