Govt attempts to revive ITI, approves continuation of reservation quota

V&D Bureau
New Update

The Indian government extends a straw to drowning telecom manufacturing PSU, Indian Telephone Industries (ITI) - the cabinet committee on economic affairs has on January 15th approved continuation of reservation quota for ITI which was proposed by the Department of Telecommunication.

According to the approved procurement quota, over  30 per cent of procurement orders placed by BSNL and MTNL will be reserved for ITI  and over 20 per cent of the network roll out orders for their turn key projects (like GSM network roll-out) of BSNL and MTNL. This procurement quto would be valid for an year which is effective from 21st September 3013.

"BSNL/MTNL will give 10 per cent advance against the orders placed on ITI, subject to liquidation of advances outstanding against previous projects awarded to ITI by BSNL/MTNL., so that ITI does not face the problem of working capital for execution of orders, subject to adequate safeguards for proper utilization of these advances," said an official statement.