Thursday, November 17, 2011

VRS in BSNL needs cabinet approval. DoT secretary-Business Standard.

BSNL has asked to be allowed to surrender BWA and 3G spectrum in some circles because of its declining financial health. Apart from this, do you plan to give any subsidy to it for its unviable operations? There was also a BSNL plan for a VRS (voluntary retirement scheme). Has that been approved?
The request of BSNL for surrendering of spectrum and a VRS plan is under consideration. The VRS package for BSNL could be of the order of Rs 10,000 crore and it will need Cabinet approval.
Both BSNL and MTNL had a big impact from the payout of 3G and BWA spectrum at around Rs 28,000 crore. Even the phasing out of support for uneconomical activities, at Rs 2,000 crore, was stopped for BSNL. We are looking at all the issues but it will take a couple of months to come to a final decision. The number of employees in the two organisations and their percentage of expenditure on this are much higher compared to other telecom companies, as these were mainly landline companies.
The important issue is that all this has impacted their bottom lines and all the requests, including that for a subsidy by BSNL, is being looked at collectively. It will not be a piecemeal approach.




http://www.business-standard.com/india/news/qa-r-chandrashekhar-secretary-dot/455767/

No comments:

Post a Comment