BSNL, MTNL VRS scheme: Employees opting for VRS will have to wait till FY21 for dues

Bharat Sanchar Nigam (BSNL) and Mahanagar Telephone Nigam (MTNL) employees, who have opted for voluntary retirement scheme (VRS) scheme, will have to wait for next fiscal year (FY21) to get their dues.

The reason for this delay is because the Union Budget 2020 has not made any provisions for disbursement towards the programme in FY20.

Settlement worth Rs 37,268.42 crore on account of VRS, capital investment in BSNL and MTNL for 4G spectrum and grant for payment of GST has been budgeted for the next financial year, the Business Standard reported.

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The government has set aside a provisioning of mere Rs 528 crore in the current fiscal for settlement towards implementation of the VRS.

In October last year, the central government approved a Rs 69,000 crore revival package for BSNL and MTNL that included merging the two loss-making firms, monetising their assets and giving VRS to employees so that the combined entity turns profitable in two years.

The Union Cabinet headed by Prime Minister Narendra Modi had approved a plan to combine MTNL, which provides services in Mumbai and New Delhi -- with BSNL that services the rest of the nation.

Also Read: More than 92,000 employees of BSNL, MTNL opt for VRS scheme

Also Read: Infographic: Will BSNL, MTNL merger bring losses to an end?