BSNL, MTNL Crisis: Over 78,000 Employees Opt For VRS Ahead of Merger, Confirms CMD

New Delhi, December 17: The chairman and managing director of cash-crunched Bharat Sanchar Nigam Ltd -- PK Purwar -- on Tuesday informed that 78,569 employees have availed the voluntary retirement scheme, which was offered by the Narendra Modi government. He mentioned that BSNL will accept most of the applications. As per the public service undertaking, a yearly saving of Rs 1,300 Crore -- in wages -- is expected in the financial year 2019-20, after the scheme takes effect on 31 January, 2020.

Apart from BSNL, its metro subsidiary Mahanagar Telephone Nigam Limited is concerned 14,300 employees have applied for VRS, informed Purwar. It is to be known that the Union Telecom Ministry rolled out the scheme of VRS on November 5, after which a national debate of the functioning of Centre were discussed in several platforms. 'MTNL, BSNL to Merge': Ravi Shankar Prasad Announces After Cabinet Meet, Trashes Disinvestment Speculations.

According to the VRS scheme, all the regular and permanent employees of BSNL who attained the age of 50 years or above were made eligible to seek voluntary retirement. The scheme also applies for all these employees who were deployed on deputation to other organisations or posted outside BSNL on deputation basis. For this, the Union Cabinet had in October approved a Rs 69,000 crore revival package for BSNL and MTNL.

Earlier in October, Union Telecom Minister Ravi Shankar Prasad announced that both the PSUs would be merging the two units to strengthen their fiscal position, rather than dis-investing them . Speaking to the press October 23, Prasad had said, "Union Cabinet has approved the revival plan of BSNL and MTNL and in-principle merger of the two. Spectrum of 4G to be allocated to Telecom PSEs (Public Sector Enterprises). VRS (voluntary retirement scheme) packages to be offered."

Informing about the Centre's plan, Purwar said that the total package issued includes:

1) Expense of Rs 20,140 crore for purchase of 4G spectrum.

2) Rs 3,674 crore for GST to be paid on spectrum allocation.

3) Both BSNL and MTNL to raise Rs 15,000 crore in debt on the sovereign guarantee.

4) Infusion of Rs 17,160 crore for VRS, and

5) Another approval of Rs 12,768 crore towards retirement liability.

Apart from all these fund allocation, the Centre made it clear that both BSNL and MTNL will have to monetise assets worth Rs 37,500 crore over the next three years.

(The above story first appeared on LatestLY on Dec 17, 2019 04:22 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).