Telecom Commission gives nod to VRS for MTNL employees

By May 2nd, 2016 AT 1:07 PM

Telecom Commission on Saturday has given its nod to a proposal to provide voluntary retirement scheme (VRS) to employees at state-run telecom telco, MTNL. The move is aimed at reviving the loss making telco which has been losing revenue of up to Rs 2000 crore per year.

intetnet-india-bsnl

MTNL has 40,000 employees, which leads to massive employee cost for the state owned PSU. The telco’s employee cost is 78% of the revenue, according to media reports.

The VRS scheme has been offered for three months, for 25% of their people above 50 years of age. The cost outgo for 20% employees above 50 years of age – about 5300 employees – amounts to Rs 2,000 crore, including an ex-gratia of Rs 1000 crore, according to an Economic Times report.

The money saved from this exercise will be used for paying annual maintenance costs (AMC), servicing equipment or buying new equipment, which will contribute to improving quality of service, which at present is a pain point for the telco.

In addition, the Telecom Commission, which is the highest decision body in the telecom department, has proposed steps to increase MTNL’s revenue generating streams by monetizing is assets. The steps include sharing its optic fibre, telecom towers and giving its buildings on rent.

The asset monetization process will lead to saving as Rs 300 crore a year.

Read more on:

Passionately following the Indian #Telecom Industry for over a decade from Business, Consumer and a Technical perspective. My primary focus area is Consumer & Digital Experience.

1
Leave a Reply

avatar
Photo and Image Files
 
 
 
1 Comment threads
0 Thread replies
0 Followers
 
Most reacted comment
Hottest comment thread
0 Comment authors
MTNL planning to offer VRS worth Rs 1000 crore to 5000 employees Recent comment authors
newest oldest most voted
trackback

[…] Also read: Telecom Commission gives nod to VRS for MTNL employees […]

Recent Posts

Motorola One Vision With 21:9 Display and 3500mAh Battery Debuts in India for Rs 19,999

After launching the Moto G7 series of phones, Motorola is back with another smartphone, namely, the Motorola One Vision. The...

Asus Zenfone 5Z Price in India Cut, Now Starts at Rs 21,999

Taiwanese smartphone brand, Asus, has reduced the price of its 2018 flagship smartphone, the Asus Zenfone 5Z. The smartphone which...

Monthly Data Usage per Smartphone in India Increased to 9.8GB at the End of 2018: Ericsson

With the availability of attractive data plans and higher video consumption among young users, monthly data usage per smartphone in...