The bailout package for Bharat Sanchar Nigam (BSNL) of Rs 70,000 crore, approved by the Cabinet, may go up as its employees’ union has demanded revision of pay scales before the Centre approves the Voluntary Retirement Scheme (VRS), media reports said.

The demand, raised by All India Bharat Sanchar Nigam Executives Association (AIBSNEA), was presented to the Telecom Minister Ravi Shankar Prasad via a letter. The union demanded revision of pay must be with effect from January 2017, the report added.

However, no confirmation on the reports was received at the time this report was filed.

This could be an issue for the government which is looking forward to consolidating the number of BSNL employees from its current 1.65 lakh people. If the demands are met, the total budget issued to BSNL will be affected as the VRS package is calculated on the last-drawn salary.

Out of the Rs 70,000 crore, sanctioned for the bailout package for BSNL in October, nearly Rs 30,000 crore would be used to conduct the VRS process.

Meanwhile, over 22,000 BSNL employees have already opted for the VRS plan, within two days of the state-owned corporation announcing the scheme.

(With input from agencies)