Videsh Sanchar Nigam's (VSNL) voluntary retirement scheme (VRS) has turned out to be a damp squib with just about 100 employees opting for it.
The golden handshake plan opened in the first week of September and closed on October 31. VSNL has a workforce of around 2,800.
The outgo incurred on the VRS could not be ascertained, but the company intends to utilise its internal resources to part-fund the separation package.
At present, VSNL has reserves of approximately Rs 4,000 crore. And its capital expenditure for the current year is likely to be around Rs 300 crore.
A senior VSNL official said the response was not encouraging despite the fact that a majority of its employees were not eligible for the scheme.
This is because employees who have joined from other public undertakings should have combined continuous service of a minimum 10 years including five years of continuous association with VSNL to be eligible for the handshake.
On acceptance of the application, all the eligible employees will be entitled to receive ex-gratia payment of 60 days salary for each completed year of service or payment of salary for balance period of service left, whichever is less.
The VRS was aimed at slashing workforce, improving skill level and optimisation of manpower utilisation prior to the company's privatisation.
A lukewarm response and fresh demands from employees had earlier forced VSNL to extend the VRS by a month. Accepting the demands from some employees, the board had made alterations to the policy.
