VRS package may save Rs 1,080 crore in annual salary tab: MTNL chief

NEW DELHI: The Voluntary Retirement Scheme (VRS) being proposed by the telecom department could save Rs 1,080 crore in annual wage expenses for Mahanagar Telephone NigamNSE -0.40 % Ltd (MTNL), and the telco expects about 9,500 employees to opt for the scheme as and when it comes up, according to its chairman.

The Department of Telecom (DoT) has prepared a rescue plan for the distressed PSUs, MTNL and Bharat Sanchar Nigam Ltd (BSNL), in form of a revival package that entails components like VRS, asset monetisation, and allocation of 4G spectrum. According to sources, the revival plan may be taken up by the cabinet soon.

MTNL Chairman and Managing Director PK Purwar told PTI recently that the telecom corporation expects annual salary expenses to reduce by Rs 1,080 crore, from the current about Rs 2,500 crore – bringing it to far more managable levels of 40-50 per cent of revenue.