DoT to seek FinMin nod for second BSNL VRS, to cut workforce by 35%

The state-owed provider spends virtually 7,500 crore-around 38% of revenue-to meet worker wages, which it plans to lower to 5,000 crore a year. It has actually recommended team decrease at the instance of the communications ministry, which on obtaining the thumbs-up from the finance ministry will certainly look for Cabinet approval.

An elderly BSNL official, however, stated the VRS plan is still being inside gone over and no concrete choice has been made yet. Inquiries to BSNL remained unanswered up until the publication of this report.

The ex-gratia element of the VRS had actually stood at regarding 17,500 crore towards the price of gratuity, commutation and pension plan. MTNL runs just in Delhi and Mumbai with its mobile network being managed by BSNL.

BSNL has actually sought 15,000 crore from North Block to meet the expenditures related to the volunteer retired life scheme (VIRTUAL REALITY) rollout, a main aware of the issue claimed. “BSNL’s board has sent out a proposition to DoT to lower the telco’s employee base by 18,000-to-19,000 through a VRS to make its annual report healthy and balanced,” another federal government official knowledgeable about the issue told ET.

Ultimately, in 2023, one more 89,000-crore rebirth strategy, a 3rd in 4 years, was approved by the Cabinet for allocation of 4G and 5G range, with ambitions to use business information solutions, dealt with wireless access (FWA) and captive private networks.

In 2019, the government had actually authorized a huge 69,000-crore rebirth plan that included rollout of an early retirement program for BSNL and Mahanagar Telephone Nigam (MTNL) staff members, with as lots of as 93,000 going with the splitting up system.

The Department of Telecom (DoT) will certainly look for the finance ministry’s approval to implement a 2nd virtual reality at Bharat Sanchar Nigam (BSNL), intending to trim the state-run telecom driver’s labor force by 35% and improve its annual report.

In 2022, the Centre accepted a 2nd rebirth plan for BSNL and MTNL amounting to 1.64 lakh crore, that included financial backing for de-stressing the balance sheet, capital expenses, negotiation of adjusted gross revenue (AGR) charges, and feasibility void financing (VGF) for country landline links.