BSNL reported a loss of Rs 14,904 crore in the previous financial year. However, the state-owned firm has been facing trouble lately as they have reported a loss of approximately Rs 39,000 crore in the April-December 2019, which is almost 2.5 times more than the previous year. As per the written reply by Sanjay Dhotre who is the minister of state for telecommunications marked that BSNL has informed the state that their total accumulated loss for the current financial year 2019-20 is Rs 39,089 crore.
Government Granted a Revival Package for BSNL and MTNL
Last year, the government approved a revival package for BSNL and MTNL as both the firms were operating in huge losses. BSNL and MTNL almost acquired Rs 68,751 crore from the revival package. The package granted by the government included Rs 15,000 crore sovereign bonds which would meet the operational expenses of the loss burden companies.
Apart from this, the package also included funds for 4G Spectrum allocation and Voluntary Retirement Scheme (VRS). Revival package allocated Rs 29,937 crore towards VRS for approximately 50% of the working employees. Apart from this, Rs 20,140 crore were granted for 4G spectrum allocation. Also, Rs 3,674 crore has been allocated for goods and service tax (GST) which will be imposed on radio waves.
VRS Scheme Will Save Rs 8,800 Crore Annually
According to various reports on the web, BSNL and MTNL might save Rs 8,800 crore annually as approximately 92,700 employees from both the firms have opted for voluntary retirement scheme (VRS). In the case of MTNL, approximately 14,378 employees have opted for VRS, and over 78,300 employees from BSNL have opted for VRS scheme. Top officials from both the companies have marked that they have exceeded the target limit, which was set for Voluntary Retirement Scheme (VRS).
As per the estimation by analysts, the wage bill is one of the prime reasons of loss for both the firms. However, a reduction in the number of working employees will help the firms financially as it will reduce the wage bill by 50% to Rs 7,000 crore annually, which is currently Rs 14,000 crore.