Public sector telecom major BSNL is looking to revive its fortunes by monetising its real estate assets and by cutting down its sizeable workforce by almost half, its chairman Pravin Kumar Purwar has revealed in an interview with The Economic Times.
The workforce reduction will be achieved through a voluntary retirement scheme (VRS), which is currently pending approval with the central government. The company’s employee costs currently eat up almost 75 per cent of its revenue, and cutting down on the number of permanent employees will help shore up its finances.
When questioned about how the company will maintain its operations after such a drastic reduction in its workforce, the chairman responded that greater reliance will be placed on outsourcing and workers hired on the basis of monthly contracts.
As for monetising real estate, the company already earns up to Rs 200 crore annually by renting and leasing out lands owned by it. Purwar believes this can be increased rapidly to the tune of Rs 1,000 crore.
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