The Hindu Business Line : CCEA clears Rs 1,000-cr package for ITI

THE Cabinet Committee on Economic Affairs (CCEA) on Wednesday approved a Rs 1,001-crore revival package for Bangalore-based Indian Telephones Industry (ITI) Ltd.

According to the plan, the government will provide Rs 601.53-crore interest free loan, of which Rs 458 crore will be to fund a voluntary retirement scheme project while another Rs 50 crore will be for capital. Besides, Rs 93.1 crore will be provided for provident fund dues during the current fiscal.

Fresh equity, amounting to Rs 200 crore, would be infused by the government during 2004-05. During 2005-06, another Rs 100-crore interest free loan will be given for VRS, apart from providing another Rs 100 crore for capital expenditure. The Government has also approved waiving interest and penalty payments to the tune of Rs 23.67 crore, the Union Finance Minister, Mr P. Chidambaram, told newspersons. Besides, the CCEA also approved the setting up of transmission system for Kahalgaon Phase-II at an estimated cost of Rs 464 crore.

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