Cabinet Note on Revival of BSNL-
GS, President met concern officers of DOT and found that DOT has sent Cabinet Note on Revival of BSNL to consider three points (a) 4G spectrum allocation to BSNL (b) monitisation of BSNL land and(c) VRS to 54000 employees on Gujarat model.
The VRS has been recommended of 50 years above age employees on the existing pay only.3rd PRC pay fixation in VRS is not under consideration.
The cabinet meeting is expected to be held on 15-4-2019.
5% incentive on ex- grasia is also recommended.
30% income tax deduction on ex-grasia will be there as “profits in lieu of salary” under section 17(3) of the Income Tax Act and the Employer would be liable to deduct tax on the same under section 192 of the I T Act.
The employees who opts VRS will also be loosing their increments of their left out service which will affect their pension for whole life.
In case 3rd PRC is implemented after VRS and on Revival of BSNL for the remaining employees, there pay may be revised notionally from a later date as happened in the case of 78.2% fitment order on BSNL pensioners & 73% order for MTNL, which will benefit them in terms of pension and pensionary benefits. But the employees taking VRS may not get the benefit.
The ex-grasia amount will be paid form amount of BSNLs land monitisation no funds from Govt.
Without having any roadmap for the operation and mtce of BSNL infrastructure may harm the quality of service and will further put BSNL into loss. The MTNL example is there where the VRS has been imposed twice but couldn’t revive MTNL rather put in heavy loss. We feel that Govt should allow monitisation of BSNL land and the funds collected through this should be utilised for BSNL Operation and maintenance instead of imposing VRS. During next 3-years about 50000 employees will retire on their superannuation.
Thus Govt should drop VRS from revival plan of BSNL. VRS is neither beneficial to the employees nor to the BSNL.