With reference to the report on granting of Defence PSU status to the Indian Telephone Industries (ITI), the recommendation of the Parliamentary Standing Committee of Telecom is appropriate and timely. ITI, one of the first PSUs in the country, has contributed tremendously to the growth of the telecom sector. For years together it was the major manufacturer of telephone instruments and other equipments for the Department of Telecom. ITI has been completely ignored after the introduction of the New economic Policy and orders were diverted to private companies. ITI has been intentionally made a loss making PSU to favour the private companies.

ITI is fully capable of attending to the orders of the Defence Department, which it has ably attended earlier. Hence, the government should accept the recommendations of the Parliamentary panel in this respect and confer the status of Defence PSU to ITI and manufacture Defence equipments.