BSNL Workforce Downsizing Rumors, Govt Clarifies on VRS 2.0 & Privatisation

Reports have been circulating about a second Voluntary Retirement Scheme (VRS 2.0) for Bharat Sanchar Nigam Limited (BSNL) as part of workforce reduction efforts. However, the government has now clarified that no such proposal is under consideration.

BSNL had previously implemented a VRS in 2019 as part of a revival package aimed at reducing operational costs. That scheme led to a 51 per cent reduction in employee expenses and helped the telecom PSU return to operational profitability by 2020-21. A December 2024 report had suggested that the BSNL board approved a proposal to cut 18,000 to 19,000 jobs, raising concerns about another round of downsizing.

BSNL’s 4G Rollout and Revenue Challenges

Despite improving its financial position post-2019, BSNL continues to struggle with revenue growth due to delays in its 4G rollout and intense market competition. Under the Atmanirbhar Bharat initiative, BSNL received a purchase order for 1 lakh 4G sites. As of March 5, 2025, the company has installed 83,629 sites, with 74,123 already operational.

No Plans for Privatisation, Additional Support Approved

Alongside speculation about VRS 2.0, there have also been concerns regarding BSNL’s privatisation. Addressing this, the government has confirmed that there is no proposal to privatise the state-owned telecom operator. Instead, the Union Cabinet recently approved an additional capital expenditure (capex) support of Rs 6,982 crore to strengthen BSNL’s operations and infrastructure.

While BSNL faces challenges in an increasingly competitive telecom market, the government’s stance indicates that its focus remains on revival rather than workforce reduction or privatisation.