Question : DECLINE IN PROFIT OF TELECOM INDUSTRIES



(a) whether the net profit and the operating income of the Public Sector telecom industries have declined during the year 2002-2003;

(b) if so, the details thereof and the reasons therefor; and

(c) the steps taken by the Government to increase their net profit?

Answer given by the minister

THE MINISTER OF STATE IN THE MINISTRY OF COMMUNICATIONS AND INFORMATION TECHNOLOGY (SHRI ASHOK PRADHAN)

(a) Yes, Sir.

(b) Net profit and the operating income of Indian Telephone Industsries (ITI) Ltd. are as follows:

(Rs. in crores)
Year Net Operating Profit Income
2001-02 27.55 2144.20 2001-02 21.58 2317.17 2002-03 (-)374.75 1798.54


(c) The Government had asked ITI Ltd. to submit a comprehensive Revival Plan along with various initiatives taken by the Company including cost cutting measures and also to indicate the commitments with Action Plan along with the milestones.