BSNL VRS 2.0: A Bold Step Towards Restructuring India’s Telecom Giant

 Here’s a glance at BSNL's unfolding VRS 2.0 (Voluntary Retirement Scheme)—an initiative stirring industry buzz and public conversation.

What Is BSNL VRS 2.0?

BSNL's proposed VRS 2.0 is a follow-up to its 2019 early retirement scheme, aimed at downsizing the workforce by approximately 18,000 to 19,000 employees, roughly 35% of its staff, to reduce the annual salary burden significantly .

This move is seen as a financial restructuring measure, freeing up resources for vital modernization efforts—especially the 4G/5G rollout and service upgrades .

Financial Stakes & Operational Pressure

Currently, BSNL spends around ₹7,500 crore annually on wages, accounting for nearly 38% of its revenue—a stark contrast to the single-digit figures seen at private telecom firms .

By implementing VRS 2.0, the aim is to reduce this to ₹5,000 crore, potentially unlocking ₹2,500 crore for strategic investments .

Where Things Stand

While BSNL's board has approved the proposal and aims to seek approval from the Finance Ministry and the Cabinet , the government has, as of now, stated that no such proposal is currently under consideration .

On the flip side, several employee unions have voiced strong opposition. BSNL’s employee union asserts that the company’s financial woes stem from policy flaws and inefficient management, not workforce numbers—and have demanded the VRS be withdrawn .

Further complicating the picture, the Department of Telecommunications (DoT) has reportedly paused the proposal for more internal discussions, involving consulting firm BCG to create a robust revival strategy before moving forward .

Why It Matters

For BSNL: VRS 2.0 could lighten its cost structure and propel the deployment of high-speed infrastructure—critical to regaining market relevance.

Employee Impact: Thousands may choose early exit, reshaping the internal dynamics and morale of the workforce.

Industry Implications: Moves like this may signal that public-sector telcos are under increasing pressure to rationalize operations and remain competitive amid private dominance.

BSNL VRS 2.0 — Quick Summary

Status reference date: August 21, 2025

Aspect	Key Insight
🧩Proposal	VRS 2.0 aimed at optimizing workforce; reports discussed ~18,000–19,000 employees (~35%) as potential scale.
💰Financial Goal	Lower annual wage bill and free funds for network modernization (4G/5G rollout and service upgrades).
📌Current Status	Public reporting indicated internal consideration; official comments at times stated “no proposal under consideration.”
	Policy/efficiency concerns
🚀Strategic Rationale	Improve cost structure, strengthen competitiveness, and accelerate capex into priority networks and services.
🔭What to Watch	Cabinet/DoT decisions, employee response if announced, and impact on 4G/5G deployment timelines.

Looking Ahead: What to Watch

1. Official green light from Finance Ministry / Cabinet.

2. BCG’s recommendations and DoT’s strategy.

3. Union responses and employee uptake should VRS be rolled out.

4. Impact on launch of 4G/5G services and BSNL’s modernization journey

As BSNL VRS 1.0 has already been implemented in 2020 so this VRS 2.0 will drastically reduce staff and it would be very difficult to manage operations with less employees. This will badly affect BSNL services and finally revenue loss in balance sheet so the decision taken by BCG should not be implemented.