BSNL REVIVAL PACKAGE:
CMD and all BSNL Board of Directors met All the Unions and Associations in BSNL ON 24-10-2019 to explain the BSNL Revival package approved by the Union Cabinet on 23.10.2019. A presentation was given.
Hon Minister stated that this is the last opportunity given to BSNL for Revival as Finance Ministry, NiTi Ayog etc want to close down BSNL. For Revival, BSNL has to improve the work culture and bring professionalism in the organization.
Highlights of BSNL Revival Package:
1. 4G spectrum will be allocated administratively through equity infusion on 2016 price (Rs 14,155 Cr).
1.i) 4G allotment by this calendar year as and when our network is ready.
1.ii) 80,000 to 1 lakh sites to be made ready in 12 to 15 months for an expenditure of Rs 15,000 Cr.
2. 18% GST of Rs 2540 Cr will be borne by the Govt.
3. Sovereign guarantee bond for Rs 7,500 Cr (Rs 15,000 Cr for BSNL & MTNL). Existing liability is 15,000 to 16,000 Cr.
4. Ex-Gratia payment of approx. Rs 14,800 Cr for about 80,000 employees will be borne by the Govt.
5. Monetization of selected land/building for Rs 20,000 Cr (Rs 38,000 Cr for BSNL & MTNL) in 4 years for i) debt and associated interest payment and ii) funding for CAPEX/OPEX. Existing loan is Rs 20,722 Cr.
6. Details of VRS package which is very attractive comparing to the VRS packages implemented in other sectors so far:
6.i) Employee cost for 2018-19 is Rs 14,492 Cr.
6.ii) Likely savings through VRS for about 80,000 employees is Rs 7500 Cr.
6.iii) VRS formula: (Salary means Basic + IDA of the last month in service)
6.iii).a) 35 days salary for each completed year of service.
6.iii).b) 25 days salary for each remaining year of service.
6.iii).c) Salary for the remaining service.
6.iii).d) Ex-Gratia due = [a) +b)] OR c) whichever is less.
6.iii).e) Pension for the remaining period upto 60 years of age based on the full pension (w/o commutation) of the retiring month.
6.iii).f) Ex-Gratia due+ Pension OR Ex-Gratia alone for BSNL DRs.
6.iii).g) 125% of the salary for the remaining service calculated based on the salary of the retiring month.
6.iii).h) VRS package = f) OR g) whichever is less.
6.iii).i) Ex-Gratia amount to be paid = h) minus e).
6.iii).j) Ex-Gratia will be paid in 2 instalments, 1st instalment in 2019-20 and 2nd instalment in the 1st quarter of 2020-21.
6.iv. Gratuity will be paid on attaining 60 years of age OR after 5 years of retirement (for those below 55 years of age) whichever is earlier with GPF interest rate. In case of death, gratuity will be paid immediately.
6.v. Commutation of Pension will be allowed on attaining 60 years of age OR after 5 years of retirement whichever is earlier. Till that time full pension will be paid.
6.vi. For the deferred payment of Gratuity and Commutation of Pension, relaxation in the CCS Pension Rules, 1972 is approved by the Cabinet which will be separately notified.
6.vii. VRS option will be opened for a period of 30 days through ERP.
6.viii. E/L and HPL settlement as per Rule.
7. BSNL and MTNL merger in 18 to 24 months after addressing all the contentious issues like debt, delisting of MTNL, pay & pay scales, promotion etc. Initially MTNL will become a subsidiary of BSNL.
8. Reduction of retirement age from 60 to 58: It was part of the proposal but final decision is not known. CMD hinted that if VRS is successful then there is no need for reduction of retirement age, otherwise Govt will implement 58.
9. CMD expressed the hope that the entire VRS process can be completed by 31.12.2019.
10. BSNL will go for massive restructuring and a performance oriented mechanism will be evolved. Those having personal/ family problems has to avail this opportunity of VRS. Transfer will become inevitable and compulsory. The additional 25% payment, advance payment of Ex-Gratia and interest on Gratuity may take care of the future increments.
Finally CMD and Directors requested all the Unions and Associations their full cooperation and support in the implementation of the Revival package.
(COURTESY: SNEA WEBSITE)