Bharat Sanchar Nigam (BSNL) and Mahanagar Telephone Nigam (MTNL) have offered voluntary retirement schemes to its employees. Of BSNL’s 1.50 lakh strong workforce, almost a lakh employees are eligible for the scheme, and BSNL hopes that about 70,000-80,000 will avail it. If this happens, the Company will be able to save approx. Rs 7,000 crore in wage bill. The scheme offered by MTNL, on the other hand, is based on the Gujarat Model of VRS.
BSNL’s scheme will be open between November 4 and December 3, and can be availed by all regular and permanent employees including those on deputation to other organisations, who have attained the age of 50 years or above.
Eligible employees will get ex-gratia equal to 35 days salary for each completed year of service and 25 days salary for each year of service remaining until superannuation.
Mahanagar Telephone Nigam’s VRS scheme can be availed by all regular and permanent employees of 50 years and above as on 31 January, 2020.
The Government has approved Rs 69,000 crore to revive the two companies. BSNL and MTNL will also be merged and their assets will be monetised. It is hoped that post VRS the merged entity will start showing profits in a couple of years.
As part of the revival package, Rs 20,140 crore will be invested in purchasing 4G spectrum, while Rs 3,674 crore will go into paying GST on spectrum allocation.