Home >Industry >Telecom >Over 70,000 BSNL employees have availed VRS option, says CMD
BSNL has also identified 14 land parcels worth  ₹20,000 crore for monetisation purposes.
BSNL has also identified 14 land parcels worth 20,000 crore for monetisation purposes.

Over 70,000 BSNL employees have availed VRS option, says CMD

  • As far as MTNL is concerned, 14,300 employees have applied for VRS
  • BSNL expects savings of 1300 crore in wages for the financial year ending 31 March, 2020

New Delhi: As many as 78,569 employees of Bharat Sanchar Nigam Ltd have availed the voluntary retirement scheme offered by the government and applications of most of these will be approved, the company’s chairman and managing director P.K Purwar said on Tuesday.

The company expects savings of 1300 crore in wages for the financial year ending 31 March, 2020, once the scheme takes effect on 31 January, 2020.

As far as MTNL is concerned, 14,300 employees have applied for VRS, he said.

The scheme was rolled out on November 5.

All regular and permanent employees of BSNL including those on deputation to other organisations or posted outside BSNL on deputation basis, who attained the age of 50 years or above were eligible to seek voluntary retirement under the scheme.

The Union Cabinet in October approved a 69,000 crore revival package for BSNL and MTNL that includes monetising their assets and giving VRS to employees. The two operators will also be merged.

“Initial discussions for the merger of two companies have already begun. Our focus will be on network integration and synergies," Purwar said.

Moreover, BSNL has also identified 14 land parcels worth 20,000 crore for monetisation purposes, Purwar said.

The total package approved by the Cabinet includes infusion of 20,140 crore for purchase of 4G spectrum, 3,674 crore for GST to be paid on spectrum allocation, the companies raising 15,000 crore in debt on the sovereign guarantee and government funding 17,160 crore for VRS and another 12,768 crore towards retirement liability.

Sovereign bonds will be issued to restructure debt and meet other expenses. The bonds will have to be serviced by both operators.

The two firms will also monetise assets worth 37,500 crore over the next three years.

Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.

Click here to read the Mint ePaperMint is now on Telegram. Join Mint channel in your Telegram and stay updated with the latest business news.

Close
x
×
My Reads Redeem a Gift Card Logout