Days after the union cabinet approved a revival package and merger of the state-owned telecom companies MTNL and BSNL, the former rolled out a voluntary retirement scheme (VRS) for its employees. The scheme will be open for employees till 3 December 2019 and is based on the Gujarat Model of VRS.
According to a PTI report, MTNL has sent out a notice to its employees stating that all regular and permanent employees who are 50 years of age or older as on 31 January 2020, are eligible to opt for the scheme.
MTNL Chairman and Managing Director Sunil Kumar had earlier told PTI that around 15,000 out of 22,000 the firm's employees are estimated to be eligible for the VRS scheme and will be offered attractive packages by the government.
The VRS scheme is hoped to bring down employees cost for the company.
Up to 46 months of salary is expected to be given as a lump sum ex-gratia compensation in the scheme.
In October, the government approved a Rs 68,751-crore revival package for the two loss-making companies, including 4G spectrum allocation and VRS for their employees.
Their merger has also been approved, however, till the completion of the process, MTNL will operate as a subsidiary of BSNL.