- There are 50,000 employees of the State-owned Bharat Sanchar Nigam Ltd (BSNL) who have been opted for a voluntary retirement scheme (VRS) that the government recently opened.
- The government had opened the VRS scheme on November 4 for both the public sector units and till Thursday, BSNL had received over 22,800 employees applying for it through the company’s portal.
There are 50,000 employees of the State-owned Bharat Sanchar Nigam Ltd (BSNL) who have been opted for a voluntary retirement scheme (VRS) that the government recently opened.
“Out of the target of 83,000 people, we have made, 50,000 employees have opted for VRS till today and 3,000 employees of MTNL, out of the target of 15,000 people. This shows that the scheme was well thought out,” Anshu Prakash, Secretary, Department of Telecommunications told reporters here on the sidelines of an event.
The government had opened the VRS scheme on November 4 for both the public sector units and till Thursday, BSNL had received over 22,800 employees applying for it through the company’s portal.
While BSNL has a total of around 1.60 lakh employees across the country, MTNL has a total of around 22,000 people in Delhi and Mumbai. The VRS scheme is based on the Gujarat model and is open until December 3.
Recently, The Center was planning to save nearly 50 percent or Rs 7,500 crore from the Bharat Sanchar Nigam Limited (BSNL) wage bill from the existing Rs 14 annual budget, 155 crores, following the Voluntary Retirement Scheme (VRS) to 80,000 employees. The state-controlled telecommunications service provider hires almost 1,59 lakh employees, including 1,05 lakh people who have already reached 50 years of age.
The government also proposed providing ex-gratia along with an outstanding pension or 125 percent of the salary for the remaining service based on the monthly retirement pay, whichever is lower.
The ex-gratia would be paid in two installments, according to BSNL officials— in 2020-21 in 2019-20 and Q1. Nevertheless, a gratuity would be charged for those under the age of 60 or 5 years of retirement, whichever is earlier.
The gratuity would be paid immediately in the event of death. Last week, Prime Minister Narendra Modi-headed Cabinet approved a Rs 70,000 crore relief package for two-state carriers with VRS as a key component in addition to monetizing real estate assets and allocating 4th-generation or 4 G airwaves.
The government would also monetize Rs 38,000 crore worth of land and property to repay debt and associated interest payments as well as financial capital and operating expenses for the two telcos.
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).