BSNL Planning to reduce Expenditure, Proposes to Retrench 18,000 Workers

Government telecom company Bharat Sanchar Nigam Limited (BSNL) has improved its functioning in the last few months. The number of BSNL subscribers has also increased. The company plans to reduce its existing workforce by about 35 percent to strengthen its balance sheet.

The Telecom Department (DoT) may soon seek approval from the Finance Ministry for the second Voluntary Retirement Scheme (VRS) of BSNL. a media Report Quoting a source having information about this, it has been told that the board of BSNL has sent a proposal to remove 18,000 to 19,000 employees through VRS. Following the instructions of the Communications Ministry, this company has proposed VRS. After getting approval from the Finance Ministry, it will be presented before the Cabinet for approval.

BSNL has demanded around Rs 15,000 crore for VRS. The company spends about Rs 7,500 crore annually on the salaries of its employees, which is about 38 percent of its revenue. BSNL plans to reduce this expense. The company will launch eSIM soon. Its 4G network may be available across the country by June next year. After this the company plans to launch 5G network.

However, 5G networks of big private telecom companies like Bharti Airtel and Reliance Jio are present in large parts of the country. In this respect BSNL is far behind these companies. The company has said that it will start eSIM service by March next year. After this, 4G network will be made available across the country by June. The company does not plan to increase tariffs any time soon. Recently, Telecom Minister Jyotiraditya Scindia had said that the financial recovery of the company is going on. BSNL plans to launch 5G service in the middle of next year. Scindia had said that the functioning of BSNL is getting stronger. It is very important for a country like India to have three-four telecom companies. He had said, “The company’s revenue has increased by 12 percent in the last three-four years. The company’s expenditure has decreased by 2 percent during this period. The company has been positive in terms of EBITDA for the last three years.” The company plans to install about one lakh towers by June next year.