- According to a government official, over 94,000 employees of state-run BSNL and MTNL have applied for the Voluntary Retirement Scheme (VRS) with an additional eight days to go to close it.
- BSNL’s 80,000 employees and MTNL’s 14,000 employees have applied for the VRS, according to reports.
According to a government official, over 94,000 employees of state-run BSNL and MTNL have applied for the Voluntary Retirement Scheme (VRS) with an additional eight days to go to close it.
BSNL’s 80,000 employees and MTNL’s 14,000 employees have applied for the VRS, according to reports.
Nearly 1,00,000 BSNL staff are eligible for the VRS of the 1,65 lakh. Under the current scheme, the effective date of voluntary retirement is January 31, 2020.
Last month, the Union Cabinet approved a plan to merge MTNL, providing telecommunications services in Mumbai and New Delhi, with BSNL serving the rest of the nation. It also approved a package to cut employee costs for the ailing PSUs by offering the VRS on the Gujarat model to 50-year-old and above employees.
The total ex-gratia (as per the Gujarat model) and eligible pension for the remaining service period do not exceed 125 percent of the salary that would have been earned by the employee on the date of voluntary retirement.
It is necessary to support the payment for ex-gratia VRS (Rs 17,169 crore) and preponed pension liability (Rs 12,768 crore spread over 10 years) through budget allocation. During FY20 and Q1FY21, the ex-gratia VRS is paying in two installments of 50 percent each.
The rescue package includes injection of Rs 20,140 crore for 4 G spectrum acquisition, Rs 3,674 crore for GST for spectrum allocation, businesses collecting Rs 15,000 crore for sovereign guarantee and government funding Rs 17,160 crore VRS and Rs 12,768 crore for retirement liability.
To revive loss-making telecom PSUs BSNL and MTNL, today’s government decided to merge the two ailing companies as part of a turnaround package that includes increasing employee sovereign bonds, monetizing capital and voluntary retirement scheme (VRS).
The Cabinet approved a plan to combine MTNL –providing services in Mumbai and New Delhi–with Bharat Sanchar Nigam Ltd (BSNL) serving the rest of the country. MTNL has reported losses in the last nine years, and since 2010, BSNL has reported losses. The total debt on both companies amounted to approximately 40,000 crores, half of which is on MTNL alone.
The MTNL system will be open to employees until December 3, 2019, based on the VRS Gujarat model. He said “all normal and permanent 50-year-old workers as of January 31, 2020” are eligible for the program.
The government has approved a BSNL and MTNL plum-based 69,000-crore turnaround package that includes combining the two loss-making companies, monetizing their properties, and giving employees VRS to make the merged company profitable in two years.
With this move, it seems we have seen the end of these two old telecom giants in India.