In December 2024, reports suggested that the Department of Telecommunications (DoT) might seek approval from the Ministry of Finance for a second voluntary retirement scheme (VRS) to further reduce Bharat Sanchar Nigam Limited’s (BSNL) workforce. The state-owned telecom firm had previously introduced a VRS program in 2019 as part of its revival package, allowing employees to retire early with a lump sum payout.
BSNL VRS 2.0: What’s the Status?
The BSNL board reportedly approved a proposal in December 2024 to cut its workforce by 18,000 to 19,000 employees through VRS. However, the government has now addressed concerns about whether it plans to reduce BSNL’s workforce by 35% under VRS 2.0.
BSNL’s first revival package, approved in 2019, aimed to lower operating costs through debt restructuring and workforce reduction via VRS. This led to a 51% reduction in employee costs, helping BSNL achieve operating profits from the 2020-21 financial year.
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Union Minister of State for Communications and IT, Chandra S. Pemmasani, acknowledged that BSNL’s revenue growth has been affected by delays in its 4G rollout and intense competition in the mobile segment. Under the Atmanirbhar Bharat initiative, BSNL received a purchase order for 1 lakh 4G sites, of which 83,629 sites have been installed as of March 5, 2025. Among these, 74,123 sites are operational. Addressing speculation about VRS 2.0, the minister clarified that no such proposal is currently under consideration.
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