Tag Archives: ITI

Modi Government on move for closure / transfer to States of BSNL, ITI

20 Friday Jan 2017

Posted by in BSNL

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When the employees’ unions/associations in BSNL protested against the reported recommendation of the NITI Ayog for closure or transfer to States of BSNL and ITI, NITI Ayog denied any such recommendation. It was clear that this was only to confuse the workers and dent their protest actions.

Now the ‘cat is out of the bag.’ A letter from the Prime Minister’s Office dated 30th December 2016 has asked the Secretary Department of Communications as follows:

“NITI Ayog after analysing the finances of CPSE has recommended Closure, transfer to States, Status etc. in respect of the following CPSEs under M/o Communications & Information Technology:

(i) Bharat Sanchar Nigam Ltd.
(ii) ITI Limited.

The undersigned is directed to request the Department concerned to the above PSEs to furnish the status of implementation in respect of the CPSEs to this office by 01.01.2017 positively.

Sd./ Mayur Maheswari
Deputy Secretary: Phone: 2301 7676”

What is the justification for the closure of BSNL and ITI? It is nothing but to maximise the profit of the private telecom companies. Neither the security of the country, nor the future of the workers are taken in to consideration.

It is sure that mighty protest actions will be organised to defeat this anti-people, anti-worker decision of the government. United struggles have to be organised with the full support of the people, trade unions and political parties

ITI should be converted to Defence PSU.

16 Tuesday Aug 2016

Posted by in PSU

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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.

Cabinet Committee clears assistance to ITI, HMT, Photo Films and Paper Corporations

01 Saturday Mar 2014

Posted by in PSU, Uncategorized

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The Cabinet Committee on Economic Affairs (CCEA) announced financial packages to four PSUs, ITI, HMT, Hindustan Paper Corporation and Cachar Paper Mill, which are facing serious financial crisis and declared sick.

ITI is having accumulated loss of Rs.4,527 crore and the salaries of the 7500 employees are not being paid regularly. Now a soft loan of Rs. 200 crore is allotted to pay the salary of the employees.

Likewise, HMT has been allotted financial assistance for payment of 1997 pay revision wages. The retirement age has been increased from 58 to 60. The total assistance for all these programmes is about Rs. 136.04 crore.

For the Paper Mills, an amount of Rs. 75 crore has been allotted as assistance.

This assistance is only a fraction of what is required for these PSUs. This belated assistance itself is only due to the coming general elections.

Government approves Rs. 4,156.79 crore for Revival of ITI

14 Friday Feb 2014

Posted by in PSU, Telecom

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The government today approved a Rs 4,156.79-crore plan for revival of ailing ITI Ltd which is expected to be implemented over a period of 18 months.

The Cabinet Committee on Economic Affairs (CCEA), headed by Prime Minister Manmohan Singh, approved the revival plan of ITI Limited based on the recommendations of the Board for Reconstruction of Public Sector Enterprise (BRPSE).

The CCEA, an official statement said, 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 Telecom Secretary.

“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 (CAPEX) for up-grading manufacturing infrastructure at various units and for new projects,” the statement said.

The balance 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 and VRS.

“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,” the release said.

Further, it said, 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.

ITI Ltd, earlier known as Indian Telephone Industries Limited, was established in 1948 and later converted as the first PSU of the country to assist the Government in the sensitive and strategic telecommunication field.

Government holds majority equity stake in the Company. The company was referred to the BIFR in 2004-05 and declared a sick company.
(Courtesy: Business Standard)

Cabinet Committee on Economic Affairs decides on 30% Quota to ITI

15 Wednesday Jan 2014

Posted by in BSNL News, PSU, Telecom

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The Cabinet Committee of Economic Affairs (CCEA) has approved the proposal of the DOT to continue allotment of 30% quota on telecom equipments for BSNL, MTNL to the ITI. The Press Statement issued by the Govt. in this connection is given below:

Procurement quota to M/s. Indian Telephone Industries Ltd. on procurements made by BSNL and MTNL

The Cabinet Committee on Economic Affairs has approved the following proposal of the Department of Telecommunications regarding continuation of reservation quota for M/s Indian Telephone Industries Limited (M/s. ITI Ltd.).

This will enable ITI to survive in the competitive environment of telecom manufacturing.

a) To continue the reservation quota policy for M/s ITI Ltd. by reserving 30 percent of procurement orders placed by BSNL and MTNL for M/s ITI Ltd., for products manufactured by ITI Ltd. and 20 percent of the network roll out orders for their turn key projects (like GSM network roll-out) of BSNL and MTNL.

b) ITI would accept orders under the reservation quota only after the price is known and it is commercially viable.

c) BSNL/MTNL will give 10 percent advance against the orders placed on ITI, subject to liquidation of advances outstanding against previous projects awarded to M/s ITI Ltd. 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.

d) ITI shall exercise its option under the reservation quota within 15 days of the opening of bid.

e) The aforesaid policy measures shall remain in force for a period of one year with effect from 21.09.2013 and shall again be reviewed considering the financial health of ITl after the expiry of this period. However, the Government has introduced the Public Procurement Bill 2012 in Parliament, and under the provisions thereof, procuring entities, including CPSEs, would have to frame Rules for Public Procurement of Goods, Work and Services. Once such public procurement rules for CPSEs are framed after the enactment of the Public Procurement Act, these would also be applicable to CPSEs under the administrative control of the Department of Telecommunications.

BSNL and MTNL will be requested to extend the benefit of reservation quota to ITI Limited for a period of one year with effect from 21.09.2013.

The extension of the benefit of (i) 30 percent of procurement orders placed by BSNL / MTNL for M/s ITl Ltd. for products manufactured by it and (ii) 20 percent of the network roll out orders for turn key projects (like GSM network roll-out, etc.) of BSNL/ MTNL with 10 percent advance against the orders placed on M/s ITI Ltd., subject to liquidation of advances outstanding against previous projects awarded to M/s ITI Ltd. by BSNL/MTNL will ensure enough orders for ITl for production activities.

Hire top scientists for R&D : Kapil Sibal, MoC.

06 Thursday Jun 2013

Posted by in Telecom

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  While speaking at a function at IIT Rourkee, Kapil Sibal, Communication Minister emphasised the need for hiring top scientists in institutions like IIT. He stated the need for IPR (Intellectual Property Rights) in the field of technology. He also stated the need for desired pay scales.

“Pick up research people of excellence from around the world. Bring them into your institutions. We now have system put in place that allows you to do that. Give them the scales of salary that you want…Young Indians around the world are very keen to come back to India,”  Communications Minister said.

I am very happy that the Minister has been frank enough to say the above. But what is happening in his own Ministry, Communications? What is the present position of the C-DOT, which was one of the best R&D institutions in the country, which invented and installed the C-DOT exchanges throughout the country, which still works efficiently. Are sufficient funds allotted to it, at least now? How many young engineers have left it in the last two decades?

Let us hope that the MInister will implement his own words in his own ministry. Let him also take necessary steps to modernise the BSNL Telecom Factories which will help in manufacturing many equipments required for telecom services. ITI is another PSU which can be revived.