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This is with reference to "ITI declared `potentially sick' — DoT turns down plea for Rs 790-Cr package" (Business Line, December 15):

To the best of our knowledge, ITI's request for financial assistance is under the active consideration of the Government.

Contrary to what your reporter quoting `official sources' has stated, DoT has favourably recommended the company's case for consideration by the Finance Ministry.

You may recall that the company's loss during the year 2002-03 resulted in the erosion of more than 50 per cent of its peak net worth during the preceding four years.

As such an erosion was required to be reported to the shareholders, an EGM was convened to consider the report of the Board on the matter and steps taken to turnaround the company.

The mandatory intimation to this effect was made to BIFR which is the appropriate authority. The reporter's statement that DoT has declared ITI as `potentially sick' is wrong and therefore confusing.

Shoukath Ahmed,

Deputy General Manager,

Corporate Public Relations,

ITI Limited,

Bangalore

Our Correspondent writes:

The article was based on DoT documents available with Business Line. As part of the quarterly performance review of public sector undertakings, the DoT had, in end November, discussed the financial revival package for ITI Ltd. and decided to forward a toned down version to the Finance Ministry which would not involve too much of a monetary outgo. It is stated as such in the available documents.

However, according to Mr Y. K. Pandey, Chairman and Managing Director, ITI Ltd., in a subsequent development, the DoT has requested the Finance Ministry to fund the company's VRS financial package of Rs 370 crore for the years 2003-06.

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