In a bid to generate revenue and set off losses, state owned MTNL and BSNL have prepared Voluntary Retirement Scheme (VRS) for their 1.21 lakh employees which would cost the government 17445 crore They have taken slew of other measures to cut costs.

“DoT has received from BSNL a Voluntary Retirement Scheme (VRS) aimed at reducing its workforce by 1,00,000. Likely expenditure on ex- gratia is estimated to be about Rs. 12,371 Crores. In addition, there will be expenditure on normal retirement benefits viz Gratuity, Pension, leave encashment and transfer grant”, said Milind Deora, the Minister of State in the Ministry of Communication and Information Technology in the Lok Sabha on Wednesday. 

MTNL has prepared a Voluntary Retirement Scheme (VRS) aimed at reducing its workforce by 21,000.

“The estimated expenditure likely to be incurred on VRS is about Rs. 5074 crores. MTNL has estimated that VRS will reduce pressure on MTNL’s wage and salary pay out to the tune of Rs.1130 crore per annum”, he said.

Deora said that BSNL has also proposed to develop 10 parcels of land for revenue generation as pilot project. Expression of Interest (EOI) has been called by BSNL for appointment of consultant for this purpose. Revenue likely to be generated by developing the lands is to be assessed after the submission of report by the consultant. 

BSNL has requested Department of Telecommunications (DoT) for surrender of Broadband Wireless Access (BWA) Spectrum in few Licensed Service Areas (Tamil Nadu, Karnataka, Kolkata, Maharashtra, Andhra Pradesh & Gujarat) and to refund Rs. 6724.51 crores for one time upfront BWA Spectrum charges paid for the same. 

He said that MTNL also is working on developing and leasing out its land bank and monetising infrastructure through creation of bank ATMs in its premises, leasing out of spare space, sharing of towers etc. The earning potentials of these activities is around Rs.100 crore per annum. 

MTNL has also prepared a Voluntary Retirement Scheme (VRS) aimed at reducing its workforce by 21,000. The estimated expenditure likely to be incurred on VRS is about Rs. 5074 crores. MTNL has estimated that VRS will reduce pressure on MTNL’s wage and salary pay out to the tune of Rs.1130 crore per annum

MTNL has also requested DoT for surrender of Broadband Wireless Access (BWA) Spectrum in Delhi and Mumbai Licensed Service Areas and to refund Rs. 4533.97 crores for one time upfront BWA Spectrum charges paid for the same, Deora said. 

BSNL and MTNL have requested DoT to finance their Voluntary Retirement Schemes and refund the BWA spectrum charges paid by them. 

He said that DoT is considering the requests of BSNL and MTNL.