No decision was taken in yesterday discussion of a panel of ministers about the VRS proposal for BSNL employees among other issues for revival of state-run telcos.
In a bid to bring down the salary burden, BSNL had proposed letting go one lakh employees by offering them voluntary retirement scheme (VRS).
According to a sources, the likely expenditure on ex-gratia for approximately 1 lakh employees is estimated to be about Rs 11,276 crore. In addition, there will be expenditure on normal retirement benefits, including gratuity, pension, leave encashment and transfer grant.
The GoM, headed by Finance Minister P Chidambaram, is likely to meet again in a week’s time.
BSNL has over 60,000 towers across India. It also has tower sharing pacts with many private operators.
As part of its revival plan, BSNL is banking on growth in broadband services, which include setting up wi-fi hot spots. The telco excepts to garner a revenue of Rs 8,984 crore in the next five years from this segment.
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Photo courtesy of V. Ganesan