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07 Jul 2016

BSNL operating profit to be over 2,000 crore in 2016

Cabinet approves pension revision for BSNL retired staff

Just before Cabinet reshuffle, telecom minister Ravi Shankar Prasad stated a threefold jump in BSNL's operating profit at Rs.2,000 crore.

He mentioned that BSNL was in heavy losses and in his first year operational profit was Rs.672 crore.

Also, the approval of pension revision for employees who retired before 10 June 2013 would result in around 9% increase in payout for 1,88,500 employees.

In context

Cabinet approves pension revision for BSNL retired staff

Past

Earlier scenario

Earlier, BSNL employees were given a salary, along with a 68.8% dearness allowance.

The government later decided to merge 50% of the DA in their salary while the remaining 18.8% was calculated on the resultant salary.

This created a difference between the existing employees with a 9.4% higher payout, leaving out the employees who retired between 2007 and 2013.

Key financial figures for the last two fiscal years

In the year 2012-13, BSNL reported an operating profit of Rs.916 crore. However in 2013-14, the PSU registered a total income of Rs.28,645 crore, with net losses at Rs.8,234 crore.

07 Jul 2016

BSNL operating profit to be over 2,000 crore in 2016

Just before Cabinet reshuffle, telecom minister Ravi Shankar Prasad stated a threefold jump in BSNL's operating profit at Rs.2,000 crore.

He mentioned that BSNL was in heavy losses and in his first year operational profit was Rs.672 crore.

Also, the approval of pension revision for employees who retired before 10 June 2013 would result in around 9% increase in payout for 1,88,500 employees.

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Pension revision restores parity

07 Jul 2016

Pension revision restores parity

The revision allows the retirees of BSNL the merger benefit of 50% DA/DR with basic pay.

The pension revision will effectively amount to 78.2% DA/DR for fitment purposes and modifying BSNL's liabilities towards retired employees for pensionary benefits payments.

Also, the pension liabilities of employees of DoT, DTS and DTO who retired before 1 October 2010 will solely be handled by the central government.

07 Jul 2016

Positive Outcomes

Pension has been revised from January 1, 2007 notionally, with actual benefit from June 10, 2013, effectively. This move removes the anomalies that existed between the pensioners and the current employees, bringing them at par.

It removes the prospects of industrial unrest by reducing the financial burden of BSNL and also fulfils its commitment to the government.

The revision will benefit around 1,18,500 pensioners.

Estimated recurring annual expenditure

An official statement stated an estimated recurring annual expenditure of Rs.129.63 crore for pensioners and Rs.24.93 crore for family pensioners whereas arrears from 2013-14 amounting to Rs.239.92 crore for pensioners and Rs.44.62 crore for family pensioners.

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