The Telecom Ministry has floated a Cabinet note for a revival package of Rs 4,156 crore for state-owned telecom equipment maker ITI
The draft CCEA
note was floated by the DoT
last week for inter-ministerial consultation after the Board for Reconstruction of Public Sector Enterprises (BRPSE) accorded its views for revival of the PSU.
"The Department of Telecom (DoT) has floated a Cabinet note seeking comments from various ministries for ITI revival," an official said.
Views have been sought on this from the ministries like Finance, Home, Defence and Heavy Industries, besides Planning Commission.
The Board of Industrial and Financial Reconstruction (BIFR
) had earlier this month approved the revival plan; and after the approval of the Cabinet Committee on Economic Affairs (CCEA), the revival package could be implemented.
The disinvestment department has also given its consent to BIFR's proposal.
"The DoT is trying to turnaround the company by leveraging upon its assets and financial re-engineering," the official said.
ITI is banking on orders from its major customers Bharat Sanchar Nigam Ltd (BSNL) and Mahanagar Telephone Nigam Ltd (MTNL) for revival. The company is trying to get more orders from defence sector to improve its revenue and reduce losses.
In 2012-13, the company incurred a net loss of Rs 182 crore against a loss of Rs 370 crore in the previous fiscal.
The state-owned firm has received regular annual grants amounting to Rs 860 crore over 2001-02 to 2010-11 besides waiver of loans, interest subsidy and financial package of Rs 2,820 crore in 2009-10. PTI