Govt to infuse over Rs 4,000 cr to revive ITI

iti-revivalThe government of India has decided to infuse more than Rs. 4,000 crore for the revival of ITI.

The Cabinet Committee on Economic Affairs has approved the revival plan of ITI based on the recommendations of the Board for Reconstruction of Public Sector Enterprise (BRPSE).

The revival plan will be supported through financial restructuring by fund infusion of Rs. 4156.79 crore.

Out of Rs. 4156.79 crore, capital grant of Rs. 2264 crore will be given in the form of equity for project implementation (CAPEX) for up-grading manufacturing infrastructure at various units and for new projects.

The balance amount of Rs. 1892.79 crore will be financial assistance in the form of grant-in-aid for statutory liabilities and other commitments made by ITI such as redemption of preferential share capital of BSNL/MTNL, arrears due to 1997 pay revision, VRS, establishment cost during the implementation of revival plan and waiver of government guarantee fee.

The CCEA has also approved regular monitoring of the implementation of the revival plan to be done by suitable committees which will be constituted at the Corporate level and unit level in ITI and by an Apex Committee to be chaired by Secretary (T), Department of Telecommunication.

The revival plan is expected to be implemented over a period of 18 months. With the cleaning of the balance sheet to a certain extent, ITI will be able to raise resources for their operations and compete in the market. Further with upgrading of the manufacturing infrastructure at its plants, ITI will be able to manufacture new technology products in telecom/diversified fields and able to increase its market share.

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