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Mahanagar Telephone Nigam Ltd (MTNL) employees may soon get a voluntary retirement scheme (VRS) offer of Rs 1000 crore, following an approval from the Telecom Commission, the highest policymaking body of the department of telecommunications (DoT), in April this year.
The ministry of communications will seek the Cabinet's approval on the same, in order to cut down high staff cost, according to a report by Infracircle.
The ministry is further trying to get it passed before the upcoming Union budget so that the funds can be budgeted.
It is estimated that about 5,000 employees of MTNL will take VRS, which is about 18% of total employee base,” the report said, adding that The VRS, once implemented, could save Rs.400-500 crore every year for MTNL and free up certain resources for making more investments in the network.
The state run telco plans to invest 2500 crore over next two-three years to expand and upgrade its network as it has been struggling hard to survive in the highly competitive market.
“We will soon send a note to the Cabinet for approval of MTNL’s VRS plan. The Telecom Commission recommended it in April this year, but there has been no movement since then. It’s a part of the revival plan for the telecom PSU (public sector unit) and the first stage is Cabinet approval,” senior official from the ministry said.
“Stagnant revenues and a high employee structure are the biggest problem areas for MTNL. Telecom is a sector which needs constant investment for modernisation. But, on the contrary capital expenditure in MTNL is quite less. There are also assets which need to be monetised,” the official added.
MTNL in June quarter posted a loss of Rs.718.02 crore where its total income decreased by 4.5% to Rs.744.72 crore. The telco offers services in Mumbai and Delhi.
MTNL may soon offer VRS worth Rs 1000 crore to employees: Report - ET Telecom
The ministry of communications will seek the Cabinet's approval on the same, in order to cut down high staff cost, according to a report by Infracircle.
The ministry is further trying to get it passed before the upcoming Union budget so that the funds can be budgeted.
It is estimated that about 5,000 employees of MTNL will take VRS, which is about 18% of total employee base,” the report said, adding that The VRS, once implemented, could save Rs.400-500 crore every year for MTNL and free up certain resources for making more investments in the network.
The state run telco plans to invest 2500 crore over next two-three years to expand and upgrade its network as it has been struggling hard to survive in the highly competitive market.
“We will soon send a note to the Cabinet for approval of MTNL’s VRS plan. The Telecom Commission recommended it in April this year, but there has been no movement since then. It’s a part of the revival plan for the telecom PSU (public sector unit) and the first stage is Cabinet approval,” senior official from the ministry said.
“Stagnant revenues and a high employee structure are the biggest problem areas for MTNL. Telecom is a sector which needs constant investment for modernisation. But, on the contrary capital expenditure in MTNL is quite less. There are also assets which need to be monetised,” the official added.
MTNL in June quarter posted a loss of Rs.718.02 crore where its total income decreased by 4.5% to Rs.744.72 crore. The telco offers services in Mumbai and Delhi.
MTNL may soon offer VRS worth Rs 1000 crore to employees: Report - ET Telecom
