Out of Rs 2,500 crore investment funds yearly, one fourth i.e, Rs 625 crore are representative benefits.
State-run telecom player BSNL has solidified its representative benefits and is undertaking other measures to cut down its use radically, pointing to support itself within the current advertise situation, its chairman and overseeing executive Anupam Shrivastava told DNA Cash.
With all the taken a toll cutting exercices put together, the company has been able to spare Rs 2,500 crore final year and a comparative sum is anticipated to be spared within the continuous fiscal.
Out of Rs 2,500 crore investment funds yearly, one fourth i.e, Rs 625 crore are representative benefits. BSNL has been battling to oversee its financials since of a tremendous worker base that stands at around 1.8 lakh with yearly costs of Rs 15,000 crore.
BSNL has too submitted a preparatory report by IIM Ahmedabad for the restoration of the company. A last report will be submitted before long. Among other measures, the report proposes giving VRS (deliberate retirement plot) to approximately 35,000 representatives at a taken a toll of Rs 13,000 crore.
"We are cutting costs in terms of electricity, administrative expenses and freezing our employee benefits. For the time being, we are not giving any LTC (leave travel concession) benefits, etc. The medical expenses are also being controlled," Shrivastava said.
"We are working on various models on how to meet the costs (for VRS package), it could either come from the government support or through a soft loan. All these modalities are being worked on," he said.
One of the greatest challenges for BSNL has been its huge workforce. Indeed with the alter in innovation, the headcount stands has been on the next side. Whereas other telecom players have almost 25,000-30,000 workers, BSNL has over five times that number.
When inquired on the off chance that there have been challenges from workers on this move, he said, luckily, workers have come forward on their possess.
"They said if you (BSNL) have to really survive, we need have to do various such activities to ensure that company survives the turmoil in the market and benefits to employees can come when the company is profitable."
The passage of Dependence Jio within the telecom space in late 2016 has pushed the financials of officeholders, counting that of BSNL, on a descending winding, separated from triggering a combination stage within the industry where now only three private players are cleared out at the side BSNL/MTNL. BSNL and MTNL have been posting misfortunes and battling to outlive in a hyper-competitive showcase.
Agreeing to Telecom Administrative Specialist of India's information for July-September 2018 quarter, excepting Dependence Jio, all the telecom players posted a drop in AGR (balanced net incomes) from get to administrations. Vodafone Thought detailed a decay of 8.49 per cent at Rs 7,528.37 crore, Bharti Airtel saw a plunge of 1.31 per cent at Rs 6,720.88 crore and BSNL recorded a 15.32 per cent drop at Rs 1,925.33. With declining normal income per client and benefit, the telecom players are continually looking at ways to discover modern streams of incomes and sparing costs.
"Our focus is preserving market share. In the industry, a trend always comes where you have to preserve your market share and take a hit on your financials. So last year, we went ahead with this strategy of preserving the market share and match tariffs with the competition. As a result, we have taken a hit on our financials and with our employee costs being so high, it had become really difficult to remain in positive territory. Last year, we also booked losses," he said.