Can BSNL Be Shut Down? Losses Mount And Operator Mulls Idea of Reducing Workforce by 54,000
The government has asked struggling state-owned telco BSNL to look at all options, from a revival plan to disinvestment.
BSNL Can Be Shut Down Over Mounting Losses, May Cut 54,000 Workforce: Report (photo for representation, image: News18)
Bharat Sanchar Nigam Limited (BSNL), a public sector company and one of the largest telecom firms in India, is not profitable. After meeting with top BSNL officials, the govt asked the telco to present a comparative analysis of all options available including shutting down in case of no revival plan in place. To look at the figures and to measure the scale at which it is making losses, it is worth noting that in the 2015-16 and 2016-17, BSNLâ€™s losses stood at Rs 4,859 crore and Rs 4,786 crore respectively. Whereas, in the 2017-18 FY, BSNLâ€™s losses widened to Rs 7,992 crore. This figure translates to about 25% of the total PSU losses that the government is making from all its companies.
According to the last TRAI report, all the other telecom operators witnessed downfall in their customer base except Reliance Jio. Idea was the biggest loser along with Vodafone. Both the firms together lost 66 lakh mobile customers
Meanwhile, BSNL is reportedly mulling to cut 54,000 workers by reducing the retirement age to 58. According to a report published in Deccan Herald, BSNL will also provide voluntary retirement scheme (VRS) to its employees. The move will lead to a reduction in retirement age of BSNL employees to 58 from the present 60 years. The move is likely to reduce the employee count of the BSNL by 33,568 employees.
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