**Summary:**
In response to Lok Sabha Unstarred Question No. 2884 on August 6, 2025, regarding Bharat Sanchar Nigam Limited (BSNL), the Minister of State for Communications and Rural Development, Dr. Pemmasani Chandra Sekhar, addressed concerns about BSNL's revenue generation and the potential implementation of a Voluntary Retirement Scheme (VRS).
The government had previously approved a revival package in 2019, which included debt restructuring and a VRS, aimed at reducing BSNL's operating costs. The 2019 VRS resulted in a 51% reduction in employee costs, leading to BSNL achieving operating profits from 2020-21.
Revenue challenges are attributed to delays in the rollout of 4G services and intense competition in the mobile sector. As of June 30, 2025, BSNL has installed 95,537 indigenously developed 4G sites, with 90,035 sites operational under the Atmanirbhar Bharat initiative. The deployed equipment is also 5G upgradable.
Currently, the Department of Telecommunications has no proposal under consideration for a new VRS in BSNL. The response also implicitly addresses concerns about the failures of previous VRS initiatives by Mahanagar Telephone Nigam Limited (MTNL) and objections raised by employee unions.
Key Entities Referenced
Bharat Sanchar Nigam Limited (BSNL): A Government owned telecommunications service provider in India, which is the subject of the Voluntary Retirement Scheme (VRS) and revival packages.
Voluntary Retirement Scheme (VRS): A scheme implemented in BSNL to reduce the number of employees and operating costs. It was implemented in 2019 and is mentioned in the context of past initiatives and employee union objections.
Ministry of Communications: The government ministry responsible for telecommunications, under which BSNL operates.
Imran Masood: A member of Lok Sabha who raised a question about the BSNL's Voluntary Retirement Scheme (VRS).
Mahanagar Telephone Nigam Limited (MTNL): Another telecommunications company, whose past VRS initiatives are being compared to the BSNL's scheme.
Pemmasani Chandra Sekhar: The Minister of State for Communications and Rural Development who provided the answer to the Lok Sabha question.
Atmanirbhar Bharat: An initiative under which BSNL has awarded Purchase Orders for indigenously developed 4G sites.
4G services: The fourth generation of mobile telecommunications technology, whose rollout has been delayed for BSNL, impacting its revenue.
GOVERNMENT OF INDIA
MINISTRY OF COMMUNICATIONS
DEPARTMENT OF TELECOMMUNICATIONS
LOK SABHA
UNSTARRED QUESTION NO. 2884
ANSWERED ON 6TH AUGUST, 2025
VOLUNTARY RETIREMENT SCHEME (VRS) IN BSNL
†2884. SHRI IMRAN MASOOD:
Will the Minister of COMMUNICATION be pleased to state:
(a) whether the Government has made any assessment to ascertain the reasons for BSNL's
inadequate revenue generation, if so, the outcome thereof;
(b) whether it is considered appropriate to implement Voluntary Retirement Scheme (VRS) to
reduce the number of employees by 35 percent on the basis of the said assessment;
(c) the special measures taken by the Government to save the VRS scheme of the BSNL from
the failed initiatives taken by the MTNL in the past; and
(d) the concrete measures taken by the Government to resolve the objections raised by the
recognised employees' unions regarding VRS?
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 30.06.2025, total 95,537 4G sites have
been installed and 90,035 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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