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Sunday, December 18

BSNL seeks Rs 12k cr to implement VRS scheme
HYDERABAD: State-owned telecom services provider BSNL, which is awaiting telecom ministry's nod for its voluntary retirement scheme, is seeking government assistance of Rs 12,000 crore for implementing it. 

BSNL CMD R K Upadhyay said the company has proposed to the Government to fund compensation package of the VRS scheme. 

"The total cost of VRS (if one lakh employees opt for it) is worked out to Rs 16,000 crore. 

"I think approximately Rs 12,000 crore is required to be given by the Government and rest ourselves will bear about Rs 4,000 crore," Upadhyay told reporters here. 

He said VRS will not only help BSNL save on salaries, which constitute around 48 per cent of its total revenues, but will also pave the way for recruiting young talent or outsourcing some of the services. 

"With the changing technology in telecom sector, where the things are out-dated in 3 to 4 years time, you need young work force to absorb new technologies," he added. 

Upadhyay said BSNL has made plans to wipe out losses in 2 to 3 years and expects the company to come out of the red. 

"This year, losses will be more or less like last year. They will not be more than that," he said. 

BSNL's losses more than tripled to about Rs 6,000 crore during 2010-11 mainly due to hefty salary outgo and expenses for procuring 3G and BWA spectrum. 

The company had registered a net loss of Rs 1,823 crore during 2009-10.

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