It Ministry To Pen Et & T Revival

The information technology ministry is working out a revival plan for the government-owned public sector undertaking (PSU) ET&T.

Although the disinvestment commission had earlier recommended the winding up of ET & T, the ministry, according to a senior information technology ministry official, is in the process of reviving the PSU. However, the government is still undecided about the fate of the other PSU under the infotech ministry - Semiconductor Complex Ltd (SCL) the other state owned enterprise that manufactures microprocessors.

The ministry plans to restructure ET & T as the information technology training arm of the government and discontinue all other activities. According to a senior ministry official the government is determined to not to close down the PSU and to open multiple revenue streams for its from its training operations.

There are also considerations to separate the different strategic units of the company and seek separate joint venture partners for each of them. "Another consideration we have is to separate the different strategic units of the company and bring in technology and expertise in each of them through separate joint ventures partners," he said.

The ministry will finalize the detailed action plan soon. It is also learnt that the government has already asked ET&T to discontinue all its non core activities and concentrate on the company's core areas of business.

"ET&T has started concentrating on training and has shown positive results. The company has started to show operational profits," sources said.

Earlier, the Parliamentary Standing Committee on Science and Technology Environment and Forests had asked the government to take immediate steps to revive the loss making SCL and make it the nucleus of growth for future technology in India.

Among the steps the committee has recommended were restructuring SCL as the sole national manufacturer of smart card and helping the PSU to sell its electronic meters at pre determined prices. According to the standing committee report, the SCL is planning to set up a joint venture company in the areas of VLSI design in partnership with an overseas and an Indian company, for which proposals are under consideration.