The Department of Telecommunications (DoT) has reportedly paused the proposal for a second voluntary retirement scheme (VRS) for Bharat Sanchar Nigam Limited (BSNL) following opposition from employees’ unions. Officials indicated that further internal consultations would be held, and the telecom department plans to involve Boston Consulting Group (BCG) before moving forward. BCG, which is being paid ₹132 crore to draft a revival strategy for BSNL, is expected to submit its recommendations within two months.
Last week, BSNL management approved a second VRS proposal that aimed to reduce the workforce by at least 35% from its current strength of over 56,000 employees. This measure was projected to cost the government ₹15,000 crore. The government sees the VRS as a step toward reducing BSNL’s employee expenses—₹8,304 crore in FY24, or 43% of its operating revenue—in an effort to make the state-run telecom profitable by FY27.
Unions and associations, however, have expressed strong opposition. P. Abhimanyu, general secretary of BSNL Employees Union, criticized the government and management for blaming BSNL’s challenges on its workforce instead of addressing systemic issues. M.S. Adasul, general secretary of Sanchar Nigam Executives Association, emphasized the need for accountability within DoT itself. Both groups have engaged with the DoT and BSNL management to oppose the VRS proposal.
BSNL previously implemented a VRS in 2020, which was anticipated to attract 30,000-35,000 employees. Instead, around 80,000 opted for the scheme, significantly reducing the workforce.
Despite these challenges, BSNL has shown some improvement. For the April-September 2024 period, its losses narrowed to ₹2,785 crore from ₹2,951 crore a year earlier, while revenue from operations grew by 10.4% to ₹9,235 crore. BSNL aims to capture 25% of the mobile subscriber market by the end of 2025, highlighting its focus on long-term growth.
