KOLKATA: The telecoms department is likely to unveil a higher compensation package by June 30 to help state-owned BSNL and MTNL coax their senior managements, involving some 1000 senior ITS officers to stay back.
Last month, BSNL and MTNL had sought a review of an April 17 Delhi High Court order that required them to release these ITS officers by May 14 as they had all opted to return to government service where pension is higher. Both telcos had claimed such a move would derail them and had sought two years from the high court to defer the ITS repatriation exercise. But the court has given them till September 30.
Since there are no vacancies in the telecom department either to absorb so many executives, the government is working closely with BSNL, MTNL and the Indian Telecom Service Association (ITSA), the body representing ITS officers, to work out a compromise formula that encourages about 900 ITS officers to stay back in BSNL and another 100-odd in MTNL in the long term interest of both telcos. So much so, an internal telecom department panel chaired by joint secretary (telecom) Malay Srivastava is trying to finalise a new compensation package by the month end.
"Efforts are on to encourage these ITS officers to remain in BSNL and MTNL by ensuring they do not lose out on central pension dues," a senior official in the telecom department with direct knowledge told ET.
At present, the high court has fixed August 12, 2005, as the absorption date for ITS officers opting to stay back in either BSNL or MTNL. But in that case, 90 per cent of this ITS bloc which is in BSNL will lose 7 years of central government pension.
Since these central government officers were deputed to BSNL 12 years ago when the telco was spun off into a separate company from DoT, they have already accumulated 12 years of pension dues. But if they opt to retire from government service and seek re-employment in BSNL from August 12, 2005, they will retain barely 5 years of central government pension. Pension earned beyond August 12, 2005, will be as per state PSU scales which is lower than central levels.
"This is the main bone of contention and government is trying to address this urgently. One option is to allow ITS officers seeking absorption in BSNL and MTNL to retire from government service on current date. That way, they get to keep their central pension for the full deputation period, and thereafter earn additional sums as per PSU scale. But there is no decision yet," said a committee member
Last month, BSNL and MTNL had sought a review of an April 17 Delhi High Court order that required them to release these ITS officers by May 14 as they had all opted to return to government service where pension is higher. Both telcos had claimed such a move would derail them and had sought two years from the high court to defer the ITS repatriation exercise. But the court has given them till September 30.
Since there are no vacancies in the telecom department either to absorb so many executives, the government is working closely with BSNL, MTNL and the Indian Telecom Service Association (ITSA), the body representing ITS officers, to work out a compromise formula that encourages about 900 ITS officers to stay back in BSNL and another 100-odd in MTNL in the long term interest of both telcos. So much so, an internal telecom department panel chaired by joint secretary (telecom) Malay Srivastava is trying to finalise a new compensation package by the month end.
"Efforts are on to encourage these ITS officers to remain in BSNL and MTNL by ensuring they do not lose out on central pension dues," a senior official in the telecom department with direct knowledge told ET.
At present, the high court has fixed August 12, 2005, as the absorption date for ITS officers opting to stay back in either BSNL or MTNL. But in that case, 90 per cent of this ITS bloc which is in BSNL will lose 7 years of central government pension.
Since these central government officers were deputed to BSNL 12 years ago when the telco was spun off into a separate company from DoT, they have already accumulated 12 years of pension dues. But if they opt to retire from government service and seek re-employment in BSNL from August 12, 2005, they will retain barely 5 years of central government pension. Pension earned beyond August 12, 2005, will be as per state PSU scales which is lower than central levels.
"This is the main bone of contention and government is trying to address this urgently. One option is to allow ITS officers seeking absorption in BSNL and MTNL to retire from government service on current date. That way, they get to keep their central pension for the full deputation period, and thereafter earn additional sums as per PSU scale. But there is no decision yet," said a committee member
