The first budget of the new UPA regime has brought cheer to the ailing Indian Telephone Industries (ITI) Ltd by giving it an allocation of Rs 2,820 crore to wipe off its losses. The company has a manufacturing unit in Rae Bareli, UPA chairperson Sonia Gandhi’s constituency.
ITI is India’s first public sector undertaking (PSU) and makes telecom equipment. It has 12,000 employees.
The company first went into the red in 2001 and has accumulated losses of Rs 2,800 crore since then. After writing off the losses, the company would be able to go ahead with its plans for disinvestments in its three units with a clean slate, said a department of telecommunications (DoT) official.
The government plans to hive off Rae Bareli, Naini and Bangalore units and form joint ventures. It would then sell stake in these units. The PSU has issued expression of interest (EOI) for appointing consultant to help in the disinvestments process.
The company had earlier received Rs 1,025 crore as a bailout package in 2005-06.