VRS for MTNL employees on cards

The public sector telecom firm has been posting losses since 2009

GN Bureau | November 7, 2016


#communication ministry   #cabinet   #PK Purwar   #DoT   #VRS   #MTNL  


 The ministry of communication may soon seek cabinet approval to offer a voluntary retirement scheme (VRS) to state-run telecom operator Mahanagar Telephone Nigam Ltd (MTNL). 

The VRS amounting to Rs 1,000 crore will help the company to cut down high staff cost. About 5,000 employees of MTNL will take VRS, which is about 18% of total employee base. The proposal has already been approved by the telecom commission, the highest policymaking body of the department of telecommunications (DoT). 
 
 MTNL, which offers telecom services only in Delhi and Mumbai, has been struggling to survive in a highly competitive market. It plans to invest Rs 2,500 crore over next two-three years to expand and upgrade its network.
 
 The development comes days after P.K. Purwar was appointed as the chairman and managing director (CMD) of MTNL for five years. He was earlier holding the additional charge. Once VRS is implemented, it could save Rs 400-500 crore every year for MTNL and free up certain resources for making more investments in the network, according to the news report published in VCCircle.com.
 
 In July, after a gap of more than two years, the government had started the process to select CMD for MTNL. The company had been without a full-time CMD since May 30, 2014, when A.K. Garg retired from the post. 
 
The public sector telecom firm has been posting losses since 2009-10. For the June quarter this year, it posted a loss of Rs 718.02 crore compared with Rs 734.24 crore in the same period last year. The total income declined by 4.5% to Rs 744.72 crore this June quarter from Rs 780.12 crore in the same quarter a year ago.
 

Comments

 

Other News

Stories to read over the weekend

At one time these pale rooms of the Delhi commission for women looked like sleepy corners of officialdom; they are now best described as a bustling sarkari office. The woman who transformed this moribund organisation hardly looks like a powerful leader. Dressed in casual blue jeans and loose deni

Tata Trusts, PFA to build state-of-the-art veterinary hospital

Tata Trusts and People For Animals (PFA) announced their collaboration to build a state-of-the-art, multi-specialty veterinary hospital and emergency clinic at Navi Mumbai to serve the needs of all domestic and farm animals at affordable rates.   The hospital will be built in Kala

The shot just got smarter

A long queue of women, infants in their arms, extends outside the immunisation room at the community health centre (CHC) in Bhangel village, Noida, a pink double-storey building beside a bustling market. Unmindful of the chit-chatting and baby babble, Mariamma Samuel, an auxiliary nurse-cum-midwi

Do you think fugitive industrialist Vijay Mallya will be extradited from Britain to India?

Do you think fugitive industrialist Vijay Mallya will be extradited from Britain to India?

Reform first, privatise later: Bibek Debroy to railways

Before privatisation and corporatisation, the Indian Railways need to undertake major reforms including commercial accounting, decentralisation and human resource among others, said Bibek Debroy, economist and member, NITI Aayog at Railways Reforms and Governance Conclave organised by Governance Now on Fri

NTPC plans for 32 GW installed capacity via renewable sources

NTPC Ltd has raised Rs 2,000 crore through green masala bonds in overseas market under its $4 billion medium term note programme, union minister Piyush Goyal informed the Lok Sabha. The proceeds of these bonds will be used for financing renewable energy projects in accordance with applicable

Video

हमेशा रहें चुनाव के लिए तैयार - मोदी ने कहा सांसदों से

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter