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Bharat Sanchar Nigam Ltd and Mahanagar Telephone Nigam Ltd will have to buy part of its network equipment from Indian Telephone Industries Ltd for another year.
The Cabinet Committee on Economic Affairs on Wednesday decided that 30 per cent of procurement orders placed by the two telecom operators will be reserved for ITI.
In addition, 20 per cent of the network roll-out orders for their turnkey projects (like GSM network roll-out) will also be given to the struggling equipment manufacturing company.
CCEA said that the policy measure shall remain in force for a period of one year with effect from September 2013 and shall again be reviewed considering the financial health of ITl after the expiry of this period.
ITI has factories in different parts of the country, including one at Rae Bareli, the constituency of Sonia Gandhi. The state-run company has been making losses and the CCEA decision is aimed at reviving the fortunes.
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