In a written reply to the Lok Sabha, Milind Deora, Minister of State for Communications and IT, said that the proposal of voluntary retirement scheme (VRS) to their workforces will cost Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (NTNL) Rs 174.45 billion.
Deora stated that to bring down their operating costs, both BSNL and MTNL were looking at reducing their workforce by 121,000 by offering employees VRS. Deora informed Lok Sabha that the government has received a VRS from BSNL for reducing its workforce by one lakh. The likely expenditure on ex-gratia by BSNL is estimated to be about Rs 123.71 billion. In addition, BSNL will have to incur expenditure on normal retirement benefits including gratuity, pension, leave encashment and transfer grant.
Deora stated that MTNL too has proposed VRS to reduce its workforce by 21,000 and the estimated expenditure likely to be incurred by the operator on providing VRS is going to be about Rs 50.74 billion. VRS is likely to reduce pressure on MTNL?s wage and salary payout to the tune of Rs 11.13 billion per annum.
According to Deora both BSNL and MTNL have requested the Department of Telecommunications (DoT) to finance their VRS and refund the broadband wireless access spectrum charges paid by the two operators. MTNL has asked for refund of Rs 45.33 billion for surrendering spectrum in Delhi and Mumbai circles whereas BSNL has requested for a refund of Rs 67.24 billion for surrendering spectrum in Tamil Nadu, Karnataka, Kolkata, Maharashtra, Andhra Pradesh and Gujarat circles.
Deora shared that the requests of both BSNL and MTNL were being examined by DoT.
