State-owned telecom company BSNL (Bharat Sanchar Nigam Limited) has paid the salaries to its 1.63 Lakh employees which was due in November.
BSNL which has a liability of around Rs 10,000 crore, had offered VRS to all its employees, who were of 50 years of age or above. Around 78,569 BSNL employees opted for a VRS scheme.
According to BSNL chairman, Pravin Kumar Purwar, the company will save up to Rs 600 crore every month with the introduction of the VRS scheme.
In the month of October, the cabinet approved a relief package of Rs 70,000 crore for BSNL and MTNL which will include the VRS scheme, monetisation of assets and allocation of fourth generation (4G) airwaves.
BSNL has paid Rs 800 crore in terms of clearing the salary of its employees for the month of November.
According to the company, they were able to pay the wages of their employee and the outstanding liabilities from internal accruals and bank loans.
MTNL and BSNL is also planning to monetise assets worth Rs 37,500 crores in the next three years.
This whole year, it was difficult for BSNL to release the salaries of their employees on time. Since 2010, the company is going into losses. MTNL has also reported losses in nine out of the last 10 years.
The Government expects that the two loss making entities will get profitable in two years.