Construction | February 2014
bailout plan cleared for ITI
The Cabinet Committee on Economic Affairs (CCEA) has approved the revival plan of ITI Ltd, based on the recommendations of the Board for Reconstruction of Public Sector Enterprise. The revival plan will be supported through financial restructuring by fund infusion of Rs 4,156.79 crore.
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.
Out of Rs 4,156.79 crore, capital grant of Rs 2,264 crore will be given in the form of equity for project implementation for upgrading manufacturing infrastructure at various units and for new projects. The balance amount of Rs 1,892.79 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 revival plan is expected to be implemented over a period of 18 months. ITI Ltd, earlier known as Indian Telephone Industries Ltd, was established in 1948 and was incorporated in 1950.