Cabinet Committee on Economic Affairs (CCEA) today approved the following
proposal of Department of Telecommunications regarding continuation of
reservation quota for M/s. ITI Limited:
To continue the reservation quota at 30% of the requirement
of BSNL/MTNL for ITTI for products manufactured by it as well as on turn key
projects (like GSM network roll-out).
ITI would accept orders under reservation quota only after
the price is known and further if the same is commercially viable.
BSNL/MTNL will give 70% advance against the orders placed on
ITI so that ITI does not face the problem of working capital for the execution
of the orders subject to adequate safeguards for proper utilization of these
The aforesaid policy measures shall remain in force for a
period of one year w.e.f. 21.09.2009 and shall again be reviewed considering
the financial health of ITI and advantages derived in revival package as
decided by CCEA in its meeting dated 23.02.3009.
ITI Ltd., Bangalore, a Public Sector
Undertaking under Ministry of Communication & IT, Department of
Telecommunications (DoT) has incurred accumulated loss of Rs.3219 crore as on
financial position of M/s. ITI is very bad.
CCEA, in its meeting held on 28.01.2009 also directed DoT to bring up a
comprehensive proposal for financial restructuring of M/s. ITI Limited. Accordingly, a revival package for ITI
Limited is under consideration of the Department of Telecom.
order to enable ITI to survive in the competitive environment of telecom
manufacturing, BSNL and MTNL have been extending reservation benefit of 30%
alongwith 70% advance to ITI Ltd. The
validity of reservation benefit extended to ITI expired on 20.09.2009.
Implementations Strategy and
and MTNL will be requested to extend the benefit of reservation quota to ITI
Limited for a period of one year w.e.f. 21.09.2009.
extension of the benefit of 30% reservation quota with 70% advance from BSNL and
MTNL will ensure enough orders for ITI for the production activities.
Details and Progress of Scheme if
in its meeting held on 20.09.2006 had extended the benefit of 70% reservation
quota for ITI for a period of three years which has since expired on