How Voluntary Retirement Scheme Helped BSNL In Decreasing Its Losses?

 Bharat Sanchar Nigam Limited (BSNL) has finally managed to narrow its loss to Rs. 7,441.11 crores by the end of the last financial year. Notably, the telecom reported a loss of Rs. 15,499.58 crores during 2019-20. The revenue from the operations has been declined to Rs. 18,595.12 crores, which is less than 2019-20.

BSNL Revenues In FY21: Check Details

"The loss has come down mainly due to reduction in employee wages on account of voluntary retirement opted by 78,569 employees," BSNL employees said.

However, the net worth of the telecom operator has been decreased to Rs. 51,686.8 crores during FY 2021 from Rs. 59,139. 82 crores. In addition, the outstanding debt of the company has been increased to Rs. 27,033.6 crores in FY 21 from Rs. 21,674. 74 crores in FY20.

BSNL Revival Package And Voluntary Retirement Scheme

The Department of Telecommunication had issued Rs. 70,000 crores revival package for two ailing telecom operators, i.e, BSNL and MTNL. The revival package includes VRS for employees who are above 50 years.

This scheme is close to Rs. 29,937 crores, including Rs. 17,169 crores ex gratia payment and Rs. 12,768 crores for the pension, gratuity, and commutation. Notably, close to 78, 560 employees opted for the scheme.

The main reason behind reducing the size of the employees as they used to eat 77 percent of the earning of Bharat Sanchar Nigam Limited. In addition, the VRS might make the telco operator profitable and competitive in the coming days.

BSNL 4G Services: Check Details

Apart from VRS, the Department of Telecommunication said that it will provide Rs. 23,814 crores to BSNL for the 4G spectrum. Besides, the telecom operator is expected to get a sovereign guarantee of Rs. 15,000 crores.

Additionally, the DoT said that MTNL and BSNL will have to monetize their assets in four years. The assets are close to Rs. 38,000 crores. BSNL has already started its preparations to launch 4G services in the country. The company has issued tender for domestic and international companies and the successful bidder will get access to deploy 4G networks for the state-run telecom operator.