Not so long ago, the government approved investment proposition in BSNL and gave a green flag for its merger with MTNL, soon after that BSNL has given its employees an option to opt for VRS (Voluntary Retirement Scheme) and said that around 70,000 to 80,000 employees will opt for it. This is expected to save BSNL around Rs. 7,000 crores in salary expenses.
P K Purwar, BSNL Chairman and MD (Managing Director) said that the scheme was rolled out on the 4th of November and will end on 3rd of December (1 month), and it has already been told to the concerned departments to inform the employees who can opt for this scheme.
It is being said that out of 1.5 lakh employees of BSNL, around 1 Lakh are can opt for this scheme.
Purwar said, ‘This is the best VRS given by the government and BSNL employees should see it in a positive frame of mind’.
Under this VRS scheme of BSNL all employees (even including employees commissioned to other departments or organisation outside BSNL) who are 50 years old or above will be able to opt for voluntary retirement.
The amount of money that will be provided to the employees opting in to this scheme will be equal to 25 days of salary of every year of service left that otherwise he/she would have completed plus 35 days of salary per year for every year the employee have worked in the organisation
MTNL too has rolled VRP for their employees and will be open until the same date, i.e. 3rd of December 2019.
As per MTNL’s schemes, all the employees (until otherwise mentioned) of 50 years and above (as of January 31st 2020) will be allowed to opt for voluntary retirement.
Last month, government said BSNL and MTNL will be merged together and additionally, approved a sum of Rs. 69,000 crores to revive these two companies after their merger and for VRS schemes.
The Rs. 69,000 crores approved by the government will be used for different activities, Rs. 23,814 crores are given for obtaining 4G spectrum, which includes Rs. 3,674 crores for GST. Rs. 17,160 crores is expected to be the expense incurred from VRS schemes. Rs. 12,768 crores will be used to write off retirement liability, and at last companies raising Rs 15,000 crore in debt on the sovereign guarantee.
These two firms will also have to mint money from their assets worth upwards of Rs. 37,000 crore in the coming 3 years.
Both MTNL and BSNL have been reporting loses in their balance sheet since over 8 years and have a combined debt of around Rs. 40,000 crore.