NEW DELHI, Aug 25: The Board for Reconstruction of Public Sector Enterprises (BRPSE) has recommended a revival package of over Rs 4,100 crore to nurse the ailing state-owned ITI Ltd back to health.
“The revival plan for ITI envisages manufacturing of telecom/electronic products, taking up manufacturing of existing products (like solar and Ascon) and communication and electronic products for defence,” an official told.
The Rs 4,156-crore proposal includes infusion of funds for capital expenditure in the form of equity, for payment of outstanding dues of MTNL and BSNL, for payment of statutory dues and funds towards employees related dues, he added.
Besides, it has suggested induction of fresh manpower in the company where necessary, as well as reductions through Voluntary Retirement Scheme (VRS), he said.
As on July 1, 2013 the sick unit’s employee strength was 8,218 comprising 4,096 officers and 4,122 non-officers.
The Board has also suggested that the Telecom Ministry to give primary attention to help the sick unit regain its status as state-of-the-art technology provider so that it can meet domestic demand and compete globally as well, the official said.
Also, the BRPSE said that one or more multinational partners could be found for the company to form a joint venture between the central government and the concerned MNC.
Further, it said the Department of Telecom should consider closing down some units of ITI to make it more viable and reduce fixed expenditure on sustainable basis, the official said.
The company had started incurring losses from 2002-03 onwards due to cost plus orders, falling price of telecom equipment, rapid changes in technology, high-cost of production and labour costs.
ITI has six manufacturing units in various states, including Karnataka, Uttar Pradesh and Kerala. The company has core competency in encryption, network projects, CDMA and GSM network installation and maintenance.
During 2012-13, ITI registered a loss of Rs 182 crore. (PTI)
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