Voluntary Retirement Scheme in BSNL: A Strategic Workforce Management Initiative
The Voluntary Retirement Scheme (VRS) in Bharat Sanchar Nigam Limited (BSNL) has been a significant initiative aimed at addressing workforce management and operational efficiency within the organization. Launched as part of broader restructuring efforts, VRS allows employees to voluntarily retire from service, providing them with financial benefits while simultaneously enabling the company to streamline its workforce.
Objectives of VRS
The primary objectives of the VRS in BSNL include:
- Workforce Rationalization: To reduce the employee count in alignment with the changing dynamics of the telecom industry, particularly in response to technological advancements and market competition.
- Cost-Reduction: By incentivizing voluntary retirement, BSNL aims to cut down on salary expenditures and associated costs, contributing to the financial health of the organization.
- Employee Empowerment: The scheme offers employees an option to exit the organization on their terms, allowing them to pursue other opportunities or retire early.
GOVERNMENT OF INDIA
MINISTRY OF COMMUNICATIONS
DEPARTMENT OF TELECOMMUNICATIONS
LOK SABHA
UNSTARRED QUESTION NO. 2293
TO BE ANSWERED ON 12TH MARCH, 2025
VOLUNTARY RETIREMENT SCHEME IN BSNL
2293. DR. DHARAMVIRA GANDHI:
Will the Minister of COMMUNICATION be pleased to state:
(a) whether the Government has conducted an assessment of the factors contributing to Bharat Sanchar Nigam Limited’s (BSNL) in substantial revenue generation and if so, the details of said assessment;
(b) whether the findings of these assessments support the decision to reduce BSNL’s workforce by 35% through the Voluntary Retirement Scheme (VRS) and if so, the rationale for this measure;
(c) the steps being taken to ensure that the VRS initiative for BSNL does not face the same challenges as previous VRS initiatives for Mahanagar Telephone Nigam Limited (MTNL), which failed to improve its financial performance; and
(d) the Government’s response to concerns raised by the recognised employee union regarding the VRS initiative and the measures planned to address their grievances effectively?
ANSWER
MINISTER OF STATE FOR COMMUNICATIONS AND RURAL DEVELOPMENT (DR. PEMMASANI CHANDRA SEKHAR)
(a) to (d) The Government approved the first Revival package in 2019 to bring down the operating cost of BSNL by Debt restructuring through Sovereign Guarantee Bonds as well as VRS. After implementation of VRS in 2019, the employee cost of BSNL got reduced by 51%. As a result of above, BSNL started earning operating profit from 2020-21.
The revenue of BSNL is impacted due to delay in roll out of 4G services as well as stiff competition in the mobile segment. Under Atmanirbhar intiative, BSNL awarded Purchase Order for one lakh 4G Sites. As on 05.03.2025, total of 83,629 numbers 4G sites have been installed, out of which 74,123 numbers are on air.
At present, no proposal for VRS in BSNL is under consideration in the Department.
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