Chapter 5 - Indian Post and Telecommunication Accounts and Finance Service (IP & TAFS) | A Bouquet of Services by IPS Lohit Matani and IPS Vishal - UPSC PDF Download

Indian Post and Telecommunication Accounts and Finance Service (IP & TAFS)

Contributor: Mr. Sahil Garg, IP&T AFS 2014 Batch

5.1 Cadre Structure and Overview

5.2 Roles and Responsibilities

The normal job profile of an officer is divided into two branches- one in Department of Telecommunication and other in Department of Posts.

 Role in Department of Telecommunication

1. Assessment of Revenue: IP&TAFS officers lead groups which are involved in assessment of around Rs. 2 lakh crore of revenue of the Department of Telecommunication from license fees and spectrum usage charges paid by telecom licensers. They also decide the governmental share in this revenue.
2. Revenue Collection : Officers administer the collection of the above revenue from various telecom operators.
3. Spectrum Management: Officers are responsible for allocation, auctioning and management of valuable telecom spectrum.
4. Policy Making: At higher levels, IP&TAFS Officers give valuable policy advice to the Department of Telecommunication.
5. Project Appraisal: Officers appraise those projects of the department for which they have allocated money in the budget. They also ensure that the projects are achieving their desirable outcomes.
6. Financial Management: Officers are responsible for financial planning as well as budgeting for the department. They also maintain accounts of the expenditure to monitor the budgetary spending and implementation of various planned schemes.
7. Internal Audit: As a corollary, the officers also perform internal audit of the department. They ensure that the funds allocated by them are spent in the manner they were intended to be.
8. Pension Management: Officers are responsible for the management and disbursal of pensions for the Department as well as BSNL and MTNL.
9. USOF Scheme Management : Officers monitor the projects and disburse subsidy under the Universal Service Obligation Fund (USOF) Scheme for rural telephony.
10. Assets Management : Officers are also responsible for the maintenance of various assets of the department like telephone towers, radars, telephone stations, equipment, transmission cables, and so on.
11. Integrated Financial Advisor : Officers are also given an opportunity to work as Integrated Financial Advisor (akin to a Chief Financial Officer (CFO) of a private company) in the department and its attached offices.
12. Controller of Communication Accounts (CCA) Functions: Officers lead as well as work in the office of CCA of BSNL. Here they are responsible for disbursing pensions, maintaining interface with other telecom service providers, administering USO funds, managing telecom infrastructure, and coordinating with other government departments in connection with acquisition of land required for setting up infrastructure and providing power connection in the infrastructure sites
13. Legal Matters: Officers also handle legal cases and arbitration related to the department.

• Role in Department of Posts: In this department, IP&TAFS Officers perform similar accounting, planning, budgeting, auditing and legal function as they do in the Department of Telecommunication. Apart from this they do the following  functions in the Department of Posts:

1. Tariff and Costing : These officers lead teams who decide the tariff and costs of the various products of the Department of Posts.
2. IT and Other Reforms : Officers are involved in monitoring the finances of various IT and other reforms brought in the Department.

5.3 Normal Growth Profile

We will be discussing about the various career opportunities an IP&TAFS Officer has in a separate topic. However, this topic only deals with various positions an IP&T AFS Officer holds during his professional life. These positions are held when he/ she is working in his/ her main line departments.

5.4 Recruitment

The recruitment into IP&T AFS happens through two channels:

1. People are inducted into IP&T AFS after qualifying in the Civil Services Exam conducted by UPSC.
2. The Group B Officers of department are promoted to the IP&T AFS grade after 8-10 years of service. Ratio50:50.

5.5 Training

The training structure of the IP&T AFS is divided in to the following parts:

The majority of this training is conducted at the National Institute of Financial Management (NIFM), Faridabad and National Institute of Communication Finance (NICF), Ghitorni, New Delhi. However, the training also involves foreign component as well as components in other national institutions related to accounting and finance.

5.6 Variety of Opportunities for IP&TAFS Officers

Apart from the usual work profile in their main line department, IP&T AFS Officers have ample opportunities to serve in organizations of State, national as well international level.

1. ADB: Asian Development Bank
2. NDB: New Development Bank
3. CCI: Competition Commission of India
4. TRAI: Telecom Regulatory Authority of India

5.7 Perks, Privileges and Advantages for IP&T AFS Officers

IP&T AFS officers enjoy the following advantages in their service:

1. Officers have many after service opportunities like Chief Financial Officer (CFO) in organizations of high repute.
2. This 9 am to 5 pm job offers sufficient time to maintain a good work life balance.
3. Officers develop professional competence in resource validation, assessment, allocation, financial management, financial frauds, and so on.
4. The department is very accommodative in giving choice transfers and postings.
5. The postings are only in State capitals.
6. Officers are provided with a decent accommodation and their basic facilities are usually taken care of.
7. The service offers one of the fastest promotion opportunities among all the  civil services. As the cadre strength is less, there are numerous opportunities to move up in the hierarchy.
8. The job also provides with many chances to interact with the corporate entities.

5.8 Occupational Hazards

This service does not offer much public interaction and recognition as the All India Services. Moreover, the jurisdiction of their work is only limited to Telecommunication and Postal Departments.

However, with the coming of National Telecom Policy and reforms in the telecom sector, the importance of IP&T AFS is increasing. We expect higher recognition for the service in the future.

5.9 Case Studies indicating the work, challenges and dilemmas faced by an IP&T AFS Officer

5.9.1 Financial Irregularities in Spectrum Usage

IP&TAFS officers are responsible for assessment of revenue from telecom circles. They also have the duty to point out any irregularity in revenue assessment and strive to correct it using suitable measures. Mr. Praheel was posted as an Assistant CCA in the State of Gujarat. During his work, he was responsible for calculating the spectrum usage charges and license fees for all the telecom operators in the region. During his initial period, he calculated the revenue for a telecom circle (there is generally a telecom circle for a State). While analyzing the financial accounts of a telecom operator in that circle, he observed certain financial irregularities.

He observed that the operator pays less revenue and demands more tax rebate or deductions in license fees rate. On calculation, he found that the operator used to pay Rs 20 Crore per quarter less than the amount due. Considering the 22 circles, the total revenue loss to the Government of India per quarter was Rs 440 Crore. This finding was substantiated by the C&AG which reported a financial loss of around Rs 1200 Crore in last four years. The officer, in his report, asked the telecom operator to submit the required money to the Department of Telecommunication and also recommended to revoke the license agreement of the operator.

However, information about the report leaked to the affected party and they tried to influence the department using various inducements and threats. These reports are very important as they keep regular checks on revenue assessment and ensure compliance of all the rules and economic propriety by the private operators.

However when the report reached headquarter, it did not receive the same seriousness as the officer highlighted. On the contrary, people doubted the integrity of the officer and warned him against crossing his jurisdiction. The officer was demotivated by this behavior of the department.

Q. How would you react in this situation? Would you fight to get your recommendations implemented or would you let the status quo continue and continue with your work? Explain your strategy in this situation.

5.9.2 Misuse of Wireless Space

The role of an IP&TAFS officer involves auction of telecom spectrum and then auditing of its proper usage.  A base price (e.g. Rs 2,000 Crore) for a spectrum is set and then operators are called for online auction. Operators quote their prices online and the whole process is monitored by IP&T AFS officers. They point out any irregularity in the system of online auction and correct it immediately.

Another task is the audit of this wireless space. Generally term cells placed at district level detect wireless frauds. Wireless frauds happen when a telecom operator takes a spectrum from auction but does not obtain the license to operate in the region. This helps him in saving the license fees and causes a loss to the government. Without taking license, the operator sets up its towers and provides services in the region.

IP&T AFS officers in CCA monitor these activities and report them to the authorities for cancellation of the other licenses of the telecom operator. However, when Mr. Suresh pointed out such irregularities in his region, his report was not taken seriously. His seniors told him that the telecom operator is operating from a long duration in the region. Revoking the licenses of this operator will lead to disruption in the telecom services in the region and would cause great trouble to the public. He was also told that such practices are common place and all the rules made by the government cannot be followed. He was asked to remain silent and focus on his personal and professional growth rather than meddling with the affairs of the big companies.

Q. What is the dilemma faced by Suresh? What are the options in front of him? How should he respond?

5.9.3 Irregularity in Universal Service Obligation Fund

IP&T AFS officers are responsible for disbursing subsidy and monitoring projects under the Universal Service Obligation Fund (USOF) scheme for rural telephony. Under this scheme, the telecom revenue collected by the government is provided as a subsidy to telecom operators to enhance telecom services in rural and difficult areas. As these areas do not provide enough customers to recover the initial investments, government provides subsidies to operators (under USOF scheme) to setup telecom infrastructure in these regions.

This scheme is very useful in naxal affected areas, as the telecom infrastructure is very useful in helping the police forces to operate in difficult terrains and knock down the naxalites. Mr. Ghazli Ahmed was made Dy. CCA in the State of Chhattisgarh. Being from a financial background, Mr. Ghazli had acumen to quickly locate financial irregularities. After few days in office, he found that the telecom companies were misusing the USOF subsidy.

They were not using the complete money for building telecom infrastructure. Only a part of it was being used to build telecom infrastructure and the rest was being paid as extra salary to the employees of the companies for working in difficult areas. Mr. Ghazli reported this irregularity and recommended for high penalty on these operators. Due to this action, one of the operators withdrew its services from the region as it found the business very unprofitable. Employees of that operator were unwilling to work in difficult areas at normal salary level. As the operator withdrew, telecom services decreased in the region. This not only disrupted the developmental process in the region but also impacted the anti-naxal police operations in the region.

Q. Do you think the action taken by Mr. Ghazli was right? What dilemma he must have faced? What considerations would have gone in your mind before taking such a decision? Suggest a practical solution if you would have been in the place of Mr. Ghazli.