On December 17, 2025, Shri Lalji Verma posed questions regarding the inadequate revenue generation of Bharat Sanchar Nigam Limited (BSNL). The Minister of State for Communications and Rural Development, Dr. Pemmasani Chandra Sekhar, responded that the government approved a revival package in 2019 that included debt restructuring and a Voluntary Retirement Scheme (VRS), which reduced employee costs by 51%. BSNL started earning an operating profit from 2020-21 as a result of the above. The revenue of BSNL is impacted due to delay in roll out of 4G services as well as stiff competition in the mobile segment. Under Atmanirbhar Bharat initiative, BSNL has awarded Purchase Order for indigenously developed 4G sites. As on 30.11.2025, total 97,401 4G sites have been installed and 94,458 sites are ON-Air. The equipment is 5G upgradable from technology perspective. No VRS proposal is currently under consideration for BSNL.
Key Entities Referenced
Bharat Sanchar Nigam Limited (BSNL): The primary entity discussed in the document, facing revenue generation challenges.
Voluntary Retirement Scheme (VRS): Scheme implemented by BSNL to reduce its employee base.
Department of Telecommunications: The department responsible for oversight and policy related to BSNL.
Mahanagar Telephone Nigam Limited (MTNL): Referenced in relation to previous failed VRS schemes.
Atmanirbhar Bharat: Initiative mentioned in the context of BSNL's 4G infrastructure development.
GOVERNMENT OF INDIA
MINISTRY OF COMMUNICATIONS
DEPARTMENT OF TELECOMMUNICATIONS
LOK SABHA
UNSTARRED QUESTION NO. 2903
ANSWERED ON 17TH DECEMBER, 2025
INADEQUATE REVENUE GENERATION OF BSNL
†2903. SHRI LALJI VERMA:
Will the Minister of COMMUNICATIONS be pleased to state:
(a) whether the Government has undertaken a detailed assessment of the key factors contributing
to inadequate revenue generation of Bharat Sanchar Nigam Limited (BSNL) and if so, the major
findings thereof;
(b) whether the above findings justify the decision to implement Voluntary Retirement Scheme
(VRS) for the downsizing of 35 per cent employees in BSNL and if so, the details thereof;
(c) the concrete steps taken to prevent BSNL's VRS scheme from failing like previous failed
VRS schemes of Mahanagar Telephone Nigam Limited (MTNL); and
(d) the reaction of the Government to the objections raised by the recognised employees' unions
regarding this scheme and the steps taken by the Government to effectively address them?
ANSWER
MINISTER OF STATE FOR COMMUNICATIONS AND RURAL DEVELOPMENT
(DR. PEMMASANI CHANDRA SEKHAR)
(a) to (d) The Government approved the first Revival package in 2019 to bring down the
operating cost of BSNL by Debt restructuring through Sovereign Guarantee Bonds as well as VRS.
After implementation of VRS in 2019, the employee cost of BSNL got reduced by 51%. As a result
of above, BSNL started earning operating profit from 2020-21.
The revenue of BSNL is impacted due to delay in roll out of 4G services as well as stiff
competition in the mobile segment. Under Atmanirbhar Bharat initiative, BSNL has awarded
Purchase Order for indigenously developed 4G sites. As on 30.11.2025, total 97,401 4G sites have
been installed and 94,458 sites are ON-Air. The equipment is 5G upgradable from technology
perspective.
At present, no proposal for VRS in BSNL is under consideration in the Department.
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