MTNL VRS and Revival.

Question- Telecom commission proposed VRS for a Navratna company to revive it. name the company ?

Ans- MTNL

Question- These PSU are in high loss due to its high number of employees, name them ?

Ans- MTNL & BSNL

The Telecom Commission, highest decision making body of the DOT (Department of Telecom)  proposes VRS for MTNL employees above 50 years of age. This proposal needs the approval from the cabinet. MTNL & BSNL both having a high manpower due to legacy issue. Even these two company have drivers, canteen person in its payroll. While globally most of the telcos outsource most of their work to third party vendor, MTNL runs its own call centre. This in turn results in higher employee cost. This in results have resulted in higher losses for MTNL.In Delhi & Mumbai MTNL has about 40000 employees. on the other hand the likes of Airtel have 15000 employees across India for managing 22 circle operation. Most of the work is outsourced in Airtel.

The high cost on employee is a reason MTNL is not able to invest on technology  and improve its services. The VRS (Voluntary Retirement Scheme) will help MTNL in reducing its employee numbers and increase investment in technology which will put it in revival path. In last quarter MTNL has increased its revenue by 25 crore and reduces expenditure also. Hopefully this VRS scheme will help in MTNL to achieve its past glory.

Now the VRS has been successfully executed both in MTNL & BSNL, How does the state of affairs at both the state run telcos, Share your opinion in comments.