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State-owned telecom operator Bharat Sanchar Nigam Ltd (BSNL) will pay the January salary to its employees by the first week of March, before Holi, mainly from internal accruals including revenues generated during this month.
Separately, the PSU’s plans to launch 4G services are likely to pushed to July, following a delay in getting financial support from the Centre.
“Revenues from operations are the highest in February and March, as a number of clients with annual billing cycles pay their dues during this period. The internal collection in January was at about ₹1,300 crore, while that in February is expected to cross ₹1,800 crore and about ₹2,000 crore in March,” a source close to the development told BusinessLine.
Holi falls on March 9 this year.
“BSNL intends to credit January salary before March 9 and wages for February by March-end. However, this does not mean that the company is able to streamline salary payments every month,” the source added.
The telco, which generally pays salaries on the last working day of a month, had paid December salaries on February 15.
The company has already spent ₹2,600 crore in February for maintenance, rent, electricity and to clear dues of personnel who had opted for the Voluntary Retirement Scheme (VRS). In December, about 92,700 BSNL and Mahanagar Telephone Nigam Ltd staffers had opted for the VRS offered by the ailing PSUs.
ALSO READ: At final call, around 92,700 BSNL, MTNL staffers opt for VRS
BSNL’s per-month salary outgo (including EPF payouts) is about ₹1,300 crore. However, this is expected to nearly halve from February following the VRS.
ALSO READ: BSNL’s VRS success may create an operational issue
ALSO READ: BSNL staff under 55 years also opt for VRS
4G launch delayed
BSNL’s plans to launch 4G services by Apri1 1 will now be delayed and pushed further to July, following a delay in getting financial support from the Centre.
“There is a delay in issuing sovereign bonds for ₹15,000 crore as approved by the Union Cabinet in BSNL’s revival package, which is delaying vendor payments. The vendors are also reluctant to provide new equipment, while this will also impact the company’s revival plans,” the source, who declined to be identified, said.
ALSO READ: BSNL employees’ union calls for hunger strike on February 24
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