After Retiring 78,000 Employees, BSNL Saving Rs 600 Crore/Month; Pays Rs 1700 Cr To Vendors
Finally, there is some good news coming in for BSNL. Reports are coming in that some massive savings have been done, after retiring more than 78,000 employees in November.
Not only they have cleared the pending dues of all vendors, but existing employees of BSNL have now received their November salary as well.
Is BSNL finally sorting out their problems?
Rs 600 Cr/Month Saving For BSNL
As per BSNL chairman, Pravin Kumar Purwar, BSNL is now all set to save Rs 600 crore per month, after retiring almost 79,000 employees. For the months of February and March, BSNL will be getting Rs 1300 crore additional revenues, due to these savings.
He said, “We are saving up to 50% or Rs 600 crore monthly on employee cost. In the two months of February and March in this fiscal, savings of nearly Rs 1,300 crore are coming to us,”
BSNL, which paid almost 75% of their revenues as wages till now, executed a successful VRS or Voluntary Retirement Scheme for all employees, wherein total of 78,569 employees opted for VRS.
This is now turning out to be a smart decision.
All Employees Paid November Salary, Vendors Paid Their Dues
Out of Rs 10,000 crore of dues, which BSNL needs to pay to the vendors, they have now cleared Rs 1700 crore in this month (January 2020).
Besides, all existing BSNL employees have been paid their November salary. After the VRS scheme, there are around 70,000 employees left in BSNL, and total of Rs 800 crore per month expense is incurred for paying their salaries.
BSNL Chairman said, “We have released Rs. 1,700 crore to our vendors and contractors for various dues through loans and internal accruals. Our overall outstanding is around Rs. 10,000 crore,”
As per another report, BSNL in partnership with the Department of Investment and Public Asset Management (DIPAM) is evaluating their real estate assets, which are believed to be valued at Rs 70,000 crore.
Very soon, BSNL will start the process of monetizing their real estate as well.
If all these planning goes through successfully, then this can be India’s one of the biggest turnarounds for any company.
We will keep you updated, as more details come in.