BSNL Likely To Reduce Retirement Age Post-Polls

The state-run telecom services provider Bharat Sanchar Nigam Limited (BSNL) is likely to go ahead with the proposal to reduce the retirement age of its employees — aimed at trimming its headcount — after the elections are over following an intervention by the Prime Minister’s Office (PMO).

“It had become a political issue at the PMO level. It led to a meeting which included Principal Secretary to the Prime Minister, Cabinet Secretary, and all concerned senior officers, in which it was decided that it is not appropriate time to consider the advancement of the retirement age,” a highly-placed source told DH.

The sources further said that the decision to reduce the retirement age will be taken by the new government. The move to trim the retirement age alone will reduce the employee count by 33,568 employees. With this move, BSNL is expected to save a total of Rs 13,895 crore over the next six years on the wage bill.

The board of BSNL had, last month, approved the proposal of voluntary retirement scheme (VRS) and reduction in retirement age- a move which is likely to cause a loss of employment to 54,451 BSNL employees. The board has also asked the government to immediately allocate 4G spectrum to BSNL.

The Department of Telecom (DoT) had then decided to float a cabinet note on the VRS and 4G spectrum allocation to the BSNL. The DoT, last week, is learnt to have circulated a draft cabinet note for the allocation of 4G spectrum to BSNL and MTNL and implementation of a voluntary retirement scheme at the two loss-making telecom PSUs.

The suggestions were part of nine key measures put forth by IIM-Ahmedabad panel. The BSNL board, has, however, decided not to go ahead with the three suggestions pertaining to the division of the company into various entities, accelerate operationalisation of BSNL Tower Corporation Limited, create separate fiber infrastructure division, and project division.

“There will not be any practical advantage by constituting a tower subsidiary at this late stage. That is the view of the board. Also, there is no need for setting up of new divisions as existing verticals are enough for the purpose,” the sources told DH.

Many employees of BSNL believe that the suggestions were made in a bid to trigger the privatisation of the PSU behemoth. “Given the scale and the magnitude of the operations of BSNL, it has to be bifurcated,” a senior BSNL official told DH, wishing anonymity.

The state-run corporation has been reeling under financial stress after the advent of Jio. The company’s revenues dipped by 20% during 2017-18, on the back of predatory pricing unleashed by Mukesh Ambani-owned Jio. The company clocked Rs 25,071 crore in revenues during 2017-18, as against Rs 31,533 crore in 2016-17. Currently, the company is carrying a loss of Rs 7,993 crore during 2017-18, up 66% over the previous year.―Deccan Herald