Bharat Sanchar Nigam Restricted (BSNL), a state-run Indian telecom operator, has requested for Rs 15,000 crore from the federal government. The telco needs to implement VRS (voluntary retirement scheme) 2.0, and is in want of funds to do this. BSNL’s board has already submitted the proposal to the telecom division, and can quickly ship it to the cupboard. BSNL needs to cut back its worker prices, that are nonetheless vital towards its revenues. The state-owned telco spends round 38% of its revenues, or about Rs 7,500 crore on its workers.
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In accordance with an ET report, the objective of BSNL is to cut back it to Rs 5,000 crore a yr. This may enhance the margins for BSNL, which is struggling financially on account of not having high-speed networks. Underneath VRS 2.0, BSNL needs to cut back its workforce by about 18,000-19,000 workers. Again in 2019, BSNL introduced the VRS with the assistance of the reduction bundle. That enabled the telco to cut back prices and acquire operational effectivity.
This time too BSNL needs to do the identical. However with out funds from the federal government, that might be not possible. In case you are questioning how a lot cash BSNL has acquired in reduction packages during the last 5 years, it’s in lakhs of crores. Nevertheless, to be particular, the full money that BSNL obtained from the a number of reduction packages was Rs 21,000 crore. The remainder of the quantity is predicated on the worth of property offered, corresponding to spectrum and extra. Thus, the telco wants extra cash to pay out its workers in order that they’ll retire early.
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This may additionally permit BSNL to retain the youthful workforce that’s extra prone to work aggressively and assist flip issues round. The federal government is taking the progress of BSNL critically and would seemingly give inexperienced mild to the proposal.
