Member (Finance) specifically mentioned that the Fund for VRS to the tune of about Rs.30,000 Crores for BSNL and MTNL will be borne by the Central Govt. through Budgetary Support instead of raising of Bonds/ getting Loans.
1. VRS Package to BSNL employees who are attaining the Age of 50 years and above wherein they will get 25% more towards Ex-gratia and the Ex-gratia will be paid in cash as detailed below:
2. Cost of the 4G Spectrum including the GST amount will be allocated to BSNL by Capital Infusion.
3. Immediate Financial Support to the tune of Rs.15,000 Crores to BSNL and MTNL through infusion via Sovereign Bonds.
4. The Assets of BSNL/MTNL to the tune of Rs.38,000 Crores will be monetized over a period of 4 years.
5. MTNL will become a Subsidiary of BSNL till the time both entities are completely merged.
The VRS will likely to be implemented w.e.f. 01.01.2020, after approved by the BSNL Board, the window for the Option for VRS will likely to be opened on 15.11.2019.
- The Employees opting VRS will get cash payment of Ex-gratia amount in two installments i.e. first installment in the current financial year and the second installment in the next financial year due to the heavy Budgetary burden and as well as for availing Income Tax benefit.
- The formula for Ex-gratia will be 125% of the salary (Basic Pay plus IDA) for the remaining period minus Pension. In other words, it will be 75% of the salary for the remaining period and Pension.
- The Employees attaining the age of 56 years and 6 Months will get Ex-gratia equivalent to full Salary Benefits i.e up to a maximum of 42 Months Salary. The employees of the age less than 56 years & six months but more than 50 years will also get Ex-gratia up to a maximum of 42 Months Salary only.
- Leave Encashment & Pension (without Commutation) will be paid at the time of VRS but the Gratuity and Commutation Value of Pension Payment will be deferred till they attain the age of Superannuation (i.e., 60 Years) or 5 years after VRS, whichever is earlier. During the intervening period from the date of VRS to the date of attain the age of 60 Years, Employees will get interest @ 8% on their Gratuity amount.
2. Cost of the 4G Spectrum including the GST amount will be allocated to BSNL by Capital Infusion.
3. Immediate Financial Support to the tune of Rs.15,000 Crores to BSNL and MTNL through infusion via Sovereign Bonds.
4. The Assets of BSNL/MTNL to the tune of Rs.38,000 Crores will be monetized over a period of 4 years.
5. MTNL will become a Subsidiary of BSNL till the time both entities are completely merged.