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HomeNewsTelecom NewsBSNL to save Rs 7,500 crore due to VRS of 80,000 employees
Wednesday, 30 October 2019 05:26

BSNL to save Rs 7,500 crore due to VRS of 80,000 employees

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The state owned telecom platform BSNL will save nearly 50% or Rs 7,500 crore out of the Bharat Sanchar Nigam Limited (BSNL) wage bill, from the current Rs 14, 155 crore annual spend, following the Voluntary Retirement Scheme (VRS) to 80,000 workforce.

At present, there are 1.59 lakh individuals including 1.05 lakh those who have already attained 50 years of age.

According to revival package, “Ex-gratia payment of about Rs. 14,800 crore for about 80,000 employees will be borne by the government.”

BSNL’s VRS program will be opened for a period of 30 days through enterprise resource planning (ERP) platform. The government has also formed a committee to review the guidelines for VRS to the employees of BSNL and Mahanagar Telephone Nigam Limited (MTNL). The panel is expected to submit its findings on Wednesday.

For a long time, huge revenue-to-wage ratio out of massive headcount is one of the biggest worries of BSNL that spends close to 75% of its revenue in meeting out monthly salary disbursement. In 2018-19, BSNL’s total income stood at Rs 19,308 crore with loss ballooning to Rs 14,202 crore, from Rs 7,993 crore in 2017-18.

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