AP FiberNet plunges into debt, Babu assures its revival

A vigilance inquiry is currently underway to investigate alleged corruption during the past five years

Metro India News | AMARAVATI

AP FiberNet, launched in 2014 by Chief Minister Nara Chandrababu Naidu to provide affordable internet and cable services, has suffered a significant decline in connections and accumulated substantial debt under the previous administration. This was revealed by GV Reddy, Chairman of AP FiberNet Limited, at a press conference held at the FiberNet office in the NTR Administrative Block on Friday.

Reddy highlighted that the initiative had initially brought internet access to rural areas, benefiting both residents and employees. However, the number of connections, which stood at 10 lakh in 2019, has drastically fallen to just 5,00,000 by 2024, carrying debts of Rs.1262 crore. “Instead of growing tenfold, the connections halved, pushing the organization to the brink of bankruptcy,” Reddy stated. He expressed bewilderment at the decline despite the organization’s extensive resources.

A stark contrast was drawn between the employee expenditure under the current and previous administrations. Under Chandrababu Naidu’s leadership, Rs.40 lakh was spent monthly on salaries for 108 employees. In contrast, the previous government spent Rs.4 crore per month on 1,360 employees, a tenfold increase. Reddy criticized this, stating that the last five years had seen the “emasculation” of FiberNet services, with the organization regressing instead of progressing.

Reddy pledged a complete overhaul of the organization, alleging mismanagement and a lack of proper procedures under the previous administration. A vigilance inquiry is currently underway to investigate alleged corruption during the past five years, with full details to be released upon the report’s completion. Allegations include harassment and extortion of money from cable operators with no subsequent provision of connections.

A controversial payment of Rs.2.15 crore to the film “Vyuham”, directed by Ram Gopal Varma was also scrutinized. Despite an agreement for payment based on viewership, the film only garnered 1,863 views, resulting in a cost of Rs.11,000 per view.

The company is currently burdened with Rs.1262 crore in debt, despite being established in 2016 with an initial investment of Rs.3,580 crore. Reddy questioned how expenses doubled to Rs.6,800 crore under the previous government, particularly concerning maintenance costs.

Further irregularities included the hiring of employees without formal appointment letters, with some allegedly receiving salaries while working elsewhere, often based on simple WhatsApp messages. Reddy assured that all such discrepancies would be investigated and exposed.

Concerns were also raised about the harassment of cable operators by local electricity officials who were reportedly removing wires from poles. Reddy urged these officials to refrain from such actions and asked operators to report any issues. He also confirmed the dismissal of a female employee facing numerous allegations.

Reddy committed to a transparent recruitment process, replacing improperly appointed individuals through official notifications. He also promised to collaborate with cable operators to further develop FiberNet. The goal is to increase state FiberNet connections to 5 million within two years.