To cut down costs, BSNL to reduce contract workers

Bharat Sanchar Nigam Ltd (BSNL) is trying to reduce its expenditures by cutting down costs on account of different outsourcing works.

Telecom Minister Ravi Shankar Prasad in a written reply in the Rajya Sabha said that BSNL has informed that it outsources specific works to contractors who engage contract workers for the said works. In view of the strained financial condition of the BSNL, the state-owned telecom company has decided to implement various austerity measures which include reducing expenditures for different outsourcing works. These works include house-keeping, security and certain repair and maintenance works.

The Telecom Minister was replying to a query of YSR Congress member Prabhakar Reddy Vemireddy’s question if the Ministry is seriously pruning 30 percent of contract staff in BSNL to address some of the financial problems that the company is passing through and if last year, BSNL has removed 2,500 contract employees.

BSNL's FY19 loss is estimated at over Rs 14,000 crore while its revenue is slated to decline Rs 19,308 crore. It is facing such acute financial crisis that it has so far not paid its employees' October salary.