The Board for Reconstruction of Public Sector Enterprises (BRPSE) has recommended Rs 41 billion revival package for the loss making state-owned ITI Limited.
BRPSE aims to make ITI a leading facility for manufacturing telecom/electronic products and solar equipment along with communication products for the defence forces. The revival package for ITI includes funds for capital expenditure in the form of equity, for payment of outstanding dues of MTNL and BSNL, and the payment of statutory dues and funds towards HR cost.
BRPSE has also suggested induction of fresh manpower to induct fresh talent in the company. At the same time it has suggested a reduction in the employee base through Voluntary Retirement Scheme. As of July 1, 2013, the organisations? employee strength stood at 8,218. Further, it has suggested that the Department of Telecommunications should consider closing down some units of ITI to make its operations more viable and reduce fixed expenditure.
ITI started incurring losses from 2002-03 onwards due to increasing costs, growing competition, declining price of telecom equipment, and high 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, and CDMA and GSM network installation and maintenance. During 2012-13, ITI registered a loss of Rs 1.82 billion.
