BSNL Voluntary Retirement Scheme: DoT to Seek Approval from EC Before Moving to Cabinet

A recent report cited that more than 50,000 employees of BSNL will likely lose jobs if the telco goes for VRS

By April 4th, 2019 AT 12:29 PM
Highlights
  • With the General Elections less than ten days away, DoT is looking for approval from EC
  • BSNL has 50% of employees who'll be retiring in the next 5-8 years

The telecom ministry will seek approval from the Election Commission to move its Cabinet proposal to offer voluntary retirement scheme for MTNL and BSNL employees, a government official said Wednesday. The Department of Telecom (DoT) is preparing a Cabinet note recommending the voluntary retirement scheme (VRS) for BSNL and MTNL employees above 50 years of age. “The DoT is preparing a Cabinet note for seeking its approval to grant VRS to BSNL and MTNL employees. The Department is going to immediately approach Election Commission for its nod to approach the Cabinet,” the official, who did not wish to be identified, told reporters at PTI.

bsnl-netflix-tie-up

The ministry has to seek approval from the Commission since the Model Code of Conduct is in place for Lok Sabha elections. BSNL has 1.76 lakh employees across India and MTNL has 22,000. It is estimated that 16,000 MTNL employees and 50% of BSNL staff will retire in the next 5-6 years.

The VRS for BSNL and MTNL could have a revenue impact of Rs 6,365 crore and Rs 2,120 crore, respectively. The DoT plans to fund the VRS through the issuance of a 10-year bond. The bonds would be paid back by lease revenue that they will get from land asset monetisation.

The revenue to wage ratio in case of MTNL has swelled to 90% while in the case of BSNL it is around 60-70%. Both telecom firms have requested the government to grant VRS for employees on the Gujarat model.

Under the Gujarat model, an amount equivalent to 35 days of salary for each completed year of service, and 25 days of salary for each year of service left till retirement is offered. When asked about the number of employees to be covered under the proposed VRS, the officer said it would cover all employees above 50 years of age.

The exact number cannot be determined as it is a voluntary scheme and cannot be forced on employees, the official added.

Read more on:

Leave a Reply

avatar
Photo and Image Files
 
 
 

Recent Posts

OnePlus 7 Pro Will be an Ultra-Premium Offering by OnePlus, Likely to Get a Price Tag Over Rs 50,000

The stream of leaks, rumours and speculations related to the latest upcoming OnePlus flagship, the OnePlus 7 isn’t stopping any...

Instagram Testing Co-Watching Feature on Mobile App

Facebook-owned photo-messaging app Instagram is testing a new feature that would let users co-watch on-platform video content with friends while...

Reliance Jio Announces Launch of GigaFiber in 1,600 Cities as Testing Period Concludes

The Mukesh Ambani led telecom operator has announced that it will be optimising its go-to-market strategy for rolling out its...