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AIBSNLEA ERODE SSA Headline Animator

AIBSNLEA ERODE SSA

18/12/2011: BSNL firms up plan to wipe out Rs 12,000-crore losses in three years

Sri Upadhyay CMD BSNL said the proposed VRS initiative for 100,000 employees would cost the government about Rs 12,000 crore, while BSNL would have to shell out about Rs 4,000 crore.

"VRS will prove a major relief for us since wage costs account for around 48% of our revenues
as compared to around 8% for the leading private sector telecom operators. We will save at least 15-16% of costs on account of VRS," he said. The VRS will also help the company bring down the average age of its employees, which is now at 49 years, and go in for recruiting young talent, which could also help the company improve efficiencies, he added.  Pl Read Source

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