Meeting of all associations & unions with BSNL Board of Directors on 24.10.2019 on BSNL Revival:
Shri P. K. Purwar, CMD BSNL along with all other BSNL’s Board of Directors and CVO met representatives of All the Associations and Unions of BSNL to explain the BSNL Revival package approved by the Union Cabinet on 23.10.2019. Shree Sandip Kumar vice president-SNATTA has attended the meeting on behalf of SNATTA.
Presentation on the forthcoming Revival package was given by Director (HR) and subsequently CMD BSNL briefed us about the proceedings and informed that this is the last opportunity given to BSNL for Revival as majority view was to close the BSNL. He emphasized that BSNL must improve the work culture and bring professionalism in the organization to revive the ailing PSU. He also informed about the need to implement scientific measures for performance evaluation and moving away from the existing conventional appraisal method (APAR) to judge performance. He said that either one must perform or perish.
Highlights of BSNL Revival Package as discussed in the meeting:
1. 4G spectrum will be allocated administratively through equity infusion on 2016 price (Rs 14,155 Cr).
(i) 4G allotment will be made by this calendar year synchronies with our network sites readiness.
(ii) 80,000 to 1,00,000 sites to be made ready in 12 to 15 months for an expenditure of Rs 15,000 Cr.
(iii) 18% GST of Rs 2540 Cr will be borne by the Govt. through budgetary process.
2. Sovereign guarantee bond for Rs 7,500 Cr (Rs 15,000 Cr for BSNL & MTNL):
BSNL will issue bond with Sovereign guarantee from Government of India to meet our existing liability which is approx. 14000-15000 Crore (approx.). It will be issued very soon after due diligence.
3. Monetization of selected land/building for Rs 20,000 Cr (Rs 38,000 Cr for BSNL & MTNL):
It will be done in next four years to meet the fund for (a) repaying existing debt and associated interest payment and (b) funding for CAPEX/OPEX in near future. BSNL’s Existing loan is Rs 20,720 Cr.(approx.)
4. VRS to BSNL Employees aged more than 50 years. The Govt of India has offered a very attractive VRS package. The approved Golden Handshake for VRS in BSNL is one of the best offers extended to any government employee for the purpose. Ex-gratia amount required for giving VRS to 80,000 BSNL Employees will be about Rs 14,800 Cr which will be borne by the Govt of India.
(i) Government is expecting that approx. 80,000 employees of BSNL will opt the VRS scheme and cost will be borne by Govt of India.
(ii) Employees having remaining service of 53 months will get 125% of the existing emoluments for its remaining period.
(iii) Employees having remaining service more than 53 months and up to 80 months will get 100-125% of the existing emoluments for its remaining period.
(iv) Ex-Gratia will be paid in 2 instalments, 1st instalment in 2019-20 and 2nd instalment in the 1st quarter of 2020-21.
(v) VRS formula: Details of the VRS Formula or calculator will be uploaded by BSNL very soon in transparent manner.(Salary means Basic + IDA of the last month in service)
(vi) Gratuity will be paid on attaining 60 years of age OR after 6 years of retirement (for those below 55 years of age) whichever is earlier with GPF interest rate. In case of death, gratuity will be paid immediately.
(vii) Commutation of Pension will be allowed on attaining 60 years of age OR after 6years of retirement whichever is earlier. Till that time full pension will be paid.
(viii) VRS option will be opened for a period of 30 days through ERP and likely to be opened from 15.11.2019.
(ix) Other terminal benefits like leave encashment will be settled as per Rule.
(x) The additional 25% payment, advance payment of Ex-Gratia and interest on Gratuity may take care of the future increments.
5. BSNL and MTNL merger in 18 to 24 months:
After addressing all the contentious issues like debt, delisting of MTNL, pay & pay scales, promotion etc. MTNL will be merged in BSNL. Initially MTNL will become a subsidiary of BSNL.
Points discussed other than Revival Package:
(i) Reduction of retirement age from 60 to 58: It was part of the proposal but final decision is not known till notification is received. If VRS is successful as desired by Govt of India, it may not come. However, if VRS is not successful, BSNL need not go to Cabinet again for this purpose. Decision will be taken by GoM as per the requirement CMD.
(ii) BSNL will go for massive restructuring and a performance oriented mechanism will be evolved. Everybody has to justify his salary and will have to earn at least double to his income else those who cannot perform should opt for exit path.
(iii) Secretary has written to all the Chief Secretaries of States to not to disconnect electricity connections because of non-payment. The same letter has been sent by Hon’ble MoC to all the chief ministers.
(iv) Government will issue advisory for use of BSNL services by Govt Department and PSUs once it’s back on track.
(v) Transfer will become inevitable and compulsory.
(vi) He further emphasized that land monetization should not be projected as a tool for selling the land at cheap or throw away prices. Management wants to remain transparent and directed concerned section to share the details of land parcels with Unions & Associations and told us if anybody who wants to contribute on this should come forward. He further advised all to be in action mode not to act just as advisory.
(vii) He emphasized upon need for Fibre and Tower asset monetization and said our large resource should be turned into a profit making business.
(viii) He emphasized that thrust will be given on performance and introduction of performance oriented policy will be ensured. He further said that outperformers should be recognized and underperformers should be reprimanded. He favoured introduction of carrot and stick policy.
(ix) BSNL Management and Unions and Associations work together to bring back the glory of BSNL as before.
Finally CMD and Board of Directors requested representatives of all Associations and Unions for their cooperation & support for implementation of Revival package.