BSNL Eyes Rs 1,300 Crore Savings This Fiscal After VRS Becomes Effective
BSNL head office at Churchgate, Mumbai. (Photographer: Dhiraj Singh/Bloomberg) 

BSNL Eyes Rs 1,300 Crore Savings This Fiscal After VRS Becomes Effective

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State-owned Bharat Sanchar Nigam Ltd. said on Tuesday that as many as 78,569 employees have opted for Voluntary Retirement Scheme, and added that it expects to save Rs 1,300 crore in wage bills this fiscal after the scheme becomes effective in January.

"The VRS will be effective on Jan. 31, 2020. Our goal is that applications of people who have applied for VRS should be considered and approved." BSNL Chairman and Managing Director PK Purwar told reporters.

On the merger with Mahanagar Telephone Nigam Ltd., Purwar said discussions have started and boards of both the companies have met on a common platform.

"Our goal at this stage is network integration and operational synergies on which discussions have started," he said.

Since VRS will start on Jan. 31, 2020, the savings of Rs 1,300 crore will accrue to BSNL, for the remainder of this financial year.

On the statutory dues of the corporation arising out of the recent Supreme Court verdict on adjusted gross revenue, Purwar said, "We have asked the government that given financial stress scenario, the government can think of either reconsidering the dues or infusing equity of equivalent amount in BSNL to facilitate the payment."

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