BSNL’s salary outgo rises to Rs 13,406 crore in 2011-12

Salary burden of state-run telecom firm BSNL in 2011-12 increased to Rs 13,406 crore, almost half its revenues, with as much as Rs 5,000 crore being spent on one lakh employees who were in excess of the requirement. 

The salary cost of the telecom firm was Rs 8,809 crore in 2007-08, which accounted for around 23 per cent of its revenues, Parliamentary panel has said. 

The Pitroda Committee had recommended the government to retire or transfer around one lakh employees through best possible processes like voluntary retirement scheme (VRS) for improving the financial performance.

VRS would involve a payment of around Rs 18,000 crore and BSNL had asked the government to arrange the funds. However, the government has not made any commitment in this regard, BSNL CMD R.K. Upadhyay said 

BSNL’s losses have increased to Rs 8,851 crore in 2011-12 from a net profit of Rs 3,009 crore in 2007-08

BSNL revenues declined to Rs 27,934 crore in 2011-12 from Rs 38,053 crore in 2007-08

The employee strength of BSNL was 3.97 lakh in 2000 when it was created. It had come down to 2.58 lakh as on March 31, 2012