Moreover, the company is also likely to revise upward the compensation package being offered to employees in consultation with the unions in order to make the scheme more attractive. The scheme will not include technical personnel or personnel trained by the company in technical skills.

The company expects some 800 employees to 900 employees to subscribe to the VRS.

ITI has so far announced six VRS packages for its employees applicable up to the assistant general manager level. A total of 4,963 employees have been released by the company following the introduction of these schemes in 1991 and the staff strength now stands at 24,500. The pay out involved amounts to Rs 83.25 crore as on March 31, 1998of which only Rs 39 crore has been received by the company from the National Renewal Fund (NRF). ITI has spent Rs 49.78 crore from internal accruals for the period up to March 31, 1997, and this amount is still pending with the NRF.

For 1997-98, the company announced the VRS on November 3, 1997 for which the NRF contributed Rs 28.50 crore. Of this Rs 5.53 crore is being carried forward. The latest scheme is the first of its kind in the current fiscal.

On an average the company spends Rs 1.6 lakh per employee via the VRS package and most of the persons availing of this scheme are in the lower grades, officials said.

ITI is going all out to reduce its workforce which stood at 32,000 in 1991. The company introduced a lien scheme in June 1997. As part of this scheme, employees could work on a lien with other companies drawing their salaries but maintaining the basic perks at ITI. The scheme has so far only been utilised by 40 employees.

The idea of a placement agency for technical personnel was alsomooted during the previous fiscal. The plan was to convert recruitment cells into placement agencies to find suitable jobs for technical personnel interested in moving into the private sector. However, the plan is yet to take off.

The company urgently needs to reduce its staff strength and perk up productivity levels. Even though it posted a net profit of Rs 5.65 crore during 1997-98, turning the corner after being in the red for three years, the first quarter results in the current fiscal indicate a slump into the red with net losses amounting to Rs 34.90 crore.