The Hindu Business Line : DoT readies revival package for ITI

In a bid to revive ITI, the Department of Telecom is finalising a package for the ailing company, which include financial aid and infusion of new technologies through joint ventures.

The move is aimed at wiping out the losses as well as making it independent of projects being offered by Bharat Sanchar Nigam Ltd. The Government had earlier given a financial aid of Rs 1,025 crore to ITI to help it tide over mounting losses.

The company was on the verge of being referred to the BIFR at one point of time. ITI's losses stood at Rs 4,501 crore during 2005-06. The net loss for the quarter ended June 2006 was at Rs 139 crore compared to Rs 120 crore in the corresponding quarter last year. DoT has held two meetings with ITI to work out the package. More than financial support, the Government is looking at making ITI foray into new technologies through joint ventures with MNCs.

ITI already has over a dozen partnerships including with ZTE, Siemens, Tellabs, Juniper and Tekelec for various telecom equipments. The company has 14,700 employees spread across six manufacturing units in Bangalore, Naini, Mankapur, Rae Barelli, Palakkad and Srinagar. It also has three R&D facilities.

ITI was so far involved primarily in fixed line telephone technology, which has become obsolete with the growth of wireless communication.

It is also dependent fully on State-owned BSNL, which has reduced its investments in fixed line telephony drastically. BSNL is now focussing on cellular and broadband services making ITI factories idle.

The company's manufacturing units in Mankapur and Rae Barelli had recently got a fresh lease of life after an agreement with Alcatel to produce GSM equipment.

DoT is looking at similar technology tie-ups to bail out the ailing company.

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DoT readies revival package for ITI