After its merger with MTNL, BSNL now rolls out a voluntary retirement scheme
By MYBRANDBOOK
Days after the government approved its merger with MTNL, Bharat Sanchar Nigam Limited (BSNL) has announced a voluntary retirement scheme. The VRS offer is valid till December 3 and is expected to save Rs 7,000 crore in wage bill for the state-owned telecom company.
The cost of the VRS will be borne by the Centre through budgetary support.
BSNL expects close to 70,000-80,000 employees to opt for the VRS scheme. The employees who opt for voluntary retirement will receive 35 days salary for each completed year of service and 25 days of salary for every year of service left till superannuation.
According to 'BSNL Voluntary Retirement Scheme - 2019', all regular and permanent BSNL employees aged 50 years or more, including those on deputation to other organisation or posted outside BSNL on deputation basis, are eligible to avail VRS. The employees eligible for the VRS scheme comes to around one lakh, out of its total staff strength of 1.50 lakh.
The government had earlier approved the merger of BSNL with Mahanagar Telephone Nigam Limited (MTNL) in order to save the two ailing state-owned telecom companies. The government has decided to put in Rs 29,937 crore for revival of BSNL and MTNL, as well as monetise their assets worth Rs 38,000 crore.
In addition to the VRS, the government has also approved allocation of 4G spectrum to public sector telcos that will be funded by the government by capital infusion of Rs 20,140 crore. It will also bear GST for this spectrum, amounting to Rs 3,674 crore, through budgetary resources. The Government is, additionally, planning to raise a sovereign bond of Rs 15,000 crore for their revival.
MTNL on its part had also rolled out a voluntary retirement scheme for its employees earlier this week, valid till December 3. The scheme has been based on Gujarat Model of VRS. The company expects 15,000 out of its 22,000 employees to opt for the VRS.
"This will bring down our employees cost to 25 per cent of revenue from 85 per cent at present by February. We expect to be EBIDTA positive within 2 years due to this step," said MTNL Chairman and Managing Director Sunil Kumar.
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