The Department of Telecommunications (DoT) is seeking approval from the Union Finance Ministry to implement a second voluntary retirement scheme (VRS) at Bharat Sanchar Nigam Limited (BSNL), which aims to reduce the state-run telecom operator’s workforce by 35%. The proposal, which has been submitted by BSNL, seeks a financial support of ₹15,000 crore to meet costs of the VRS rollout.

BSNL's current workforce includes more than 30,000 non-executives and 25,000 executives. The company spends approximately ₹7,500 crore—around 38% of its revenue—on employee salaries and benefits. The goal of the VRS is to reduce this cost to ₹5,000 crore annually by eliminating 18,000 to 19,000 employees. The proposal will be sent to the Cabinet for approval once it receives the green light from the Finance Ministry.

BSNL has faced challenges in rolling out 4G services nationally, and the VRS plan is seen as a way to streamline operations and improve the company’s balance sheet. While the BSNL board has approved the VRS programme, a senior official from the company stated that the plan is still under internal discussion and no final decision has been taken.

This move follows the government’s earlier efforts to revitalize BSNL, including the approval of a ₹69,000-crore revival plan in 2019 and subsequent packages in 2022 and 2023. These plans have focused on 4G and 5G spectrum allocation, asset monetisation, and reducing financial stress on the company.