BSNL reducing number of contract workers to lower its costs , says govt

State-run BSNL is trying to cut expenditures by reducing costs on account of different outsourcing works, the government said on Thursday.

"Bharat Sanchar Nigam Ltd (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, BSNL decided to implement various austerity measures which include reducing expenditure for different outsourcing works. These works include house-keeping, security and certain repair and maintenance works," Telecom Minister Ravi Shankar Prasad told the Rajya Sabha in a written reply.

He was replying to a query of YSR Congress member Prabhakar Reddy Vemireddy, who sought to know if the Ministry is seriously pruning 30 per cent 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 employees' October salary but these are expected shortly.