BSNL board approves merger of circles

BSNL board approves merger of circles

Four temporary directors added, Finance director hire fills 3-year vacancy

The board of state-run telecom company Bharat Sanchar Nigam Limited (BSNL), which has been fire-fighting the financial crisis, has decided to merge various circles in a bid to increase efficiency.

“There are certain circles which are not benefiting the company. The board has approved the merger of circles in a bid to increase efficiency,” a highly placed source confirmed to DH.

The company, as of date, has 24 circles and three training institutes. However, according to the sources board is of the view that many of these circles are of no use to the company. “There are around 12 such circles,” a source told DH.

Some circles that have been slated for the merger include – Punjab and Haryana, Western Uttar Pradesh and Eastern Uttar Pradesh, Bihar and Jharkhand and Madhya Pradesh and Chattisgarh, among others.

According to the sources the human resources department of the company will deal with the issues of surplus staff post-merger, if any. “Mostly they will be parked within the company,” a source within the company said.

The board of the state-run teleco has accepted a proposal to trim its headcount by close to 54,000 employees, which has created a huge political debate within the country.

Among the recommendations that were approved by the board aimed at trimming the headcount are a reduction of retirement age from the present 60 years to 58 years and Voluntary Retirement Scheme (VRS) for all employees aged 50 and above.

While Department of Telecommunication (DoT) has floated a cabinet note on VRS and allocation of spectrum, it has pushed the decision on reduction of retirement age to post-election date, after the intervention by the Prime Minister’s Office (PMO).

Appointment of directors

Meanwhile, the DoT has appointed four new directors – for Finance, Human Resource, Consumer Mobility, Enterprise Business – to the state-run firm on a temporary basis of three months. DH is in possession of the orders passed by the DoT between April 26, 2019, and May 1, 2019.

The company needs a total of 10 directors, according to sources. However, until now, the company had only four independent directors. The appointment of the finance director in the company has come after a vacancy of three long years.