GOVERNMENT OF INDIA
MINISTRY OF COMMUNICATION AND INFORMATION
QUESTION NO 850
ANSWERED ON 17.08.2012
VRS in BSNL
850 SHRI PRASANTA CHATTERJEE
Will the Minister of COMMUNICATION AND INFORMATION TECHNOLOGY be pleased to
(a) whether Government is going to introduce VRS in BSNL;
(b) if so, the terms and conditions thereof; and
(c) the reaction of Unions thereon functioning in BSNL?
THE MINISTER OF STATE IN THE MINISTRY OF COMMUNICATIONS AND INFORMATION
TECHNOLOGY (SHRI MILIND DEORA)
(a) & (b) Department of Telecommunications (DoT) has received a proposal of Voluntary
Retirement Scheme (VRS) from BSNL. The main features of the proposed VRS Scheme are as
The scheme will apply to employees who have completed the age of 45 years and have served
BSNL as regular employee for 15 years.
Ex-gratia amount of 60 days salary (Basic+DA) for each completed year of service or salary for
number of months of service left, whichever is less. However, the compensation would be subject to
maximum of 60 months salary.
The ex-gratia amount will be in addition to the normal retirement benefits. Likely expenditure on
ex- gratia for approximately 1 Lac employees is estimated to be about Rs. 12,371 Crores. In
addition, there will be expenditure on normal retirement benefits viz Gratuity, Pension, leave
encashment and transfer grant.
(c) BSNL had consultations with its Executive Associations and Staff Unions. BSNL has reported
that majority of Associations / Unions have opposed the scheme or expressed their reservations.