THE MINISTER OF STATE IN THE MINISTRY OF COMMUNICATIONS AND INFORMATION TECHNOLOGY (SHRI SACHIN PILOT)
(a) to (d). A statement is laid on the Table of the House.
STATEMENT TO BE LAID ON THE TABLE OF THE LOK SABHA IN RESPECT OF PARTS (a) TO (d) OF THE LOK SABHA
STARRED QUESTION NO. 432 FOR 3RD AUGUST, 2009 REGARDING REVIVAL OF ITI.
(a) & (b) Yes, Sir. The details of the losses suffered by M/s ITI Ltd. during the last three years
and the current financial year is given below:
Year Losses (Rs. In crores)
2006-07 405.00
2007-2008 356.00
2008-09 662.00
2009-10 108.00
Provisional upto June, 2009.
ITI has been incurring losses for many years, as the telecommunication manufacturing sector is a
highly competitive, research oriented market with rapidly changing technology leading to short
product life and high obsolescence rate. Due to the advent of New Technology and stiff competition
in the Telecom scenario, the prices have crashed and margins are very low. The margins that are
available are not sufficient to meet the operational expenses of the company.
(c) & (d) Yes, Sir. To enable ITI to compete in the highly competitive environment, the Government
has decided to take the following measures:-
(i) To set up three Joint Ventures/Special Purpose Vehicles by inducting strategic partner(s)
for manufacturing new products such as Wi-Max, IP core Network and Gigabit/Gibabit Ethernet
Passive Optical Network (GPON/GEPON) at Rae Bareli, Naini and Bangalore. The Government will also
provide additional proportionate equity in the Joint Ventures/Special Purpose Vehicles apart from
making some of the existing infrastructure with ITI at Rae Bareli, Naini and Bangalore available
for immediate carrying out of such activities i.e. land, building and manpower selected by the
strategic partners(s).
(ii) To discharge the liabilities of ITI to the tune of Rs. 2820 crores, to clean up the ITI
balance sheet.
(iii) In principle decision to provide support of Rs. 180 crore to ITI for working capital
margin.
