The Cabinet Committee on Economic Affairs has approved the continuation of 30% reservation quota of the requirement of BSNL/MTNL for ITI for a period of two years w.e.f. 21.09.2010 for products manufactured by it as well as on turnkey projects (like GSM network roll-out).
BSNL/MTNL will give 70% advance against the orders placed on ITI so that ITI does not face the problem of working capital for the execution of the orders.
The extension of the benefit of 30% reservation quota with 70% advance from BSNL and MTNL will ensure enough orders for ITI for the production activities. In today’s highly competitive environment, it is very difficult for ITI to survive on its own without the benefit of quota which BSNL/MTNL has been extending for ITI for the last many years.
M/s. ITI Ltd., Bangalore, a PSU under Ministry of Communication & IT has incurred accumulated loss of ` 3513 crore as on 31.03.2010 (provisional figures). In order to enable ITI to survive in the competitive environment of telecom manufacturing, BSNL and MTNL have been extending reservation benefit of 30% alongwith 70% advance to ITI Ltd. The validity of reservation benefit extended to ITI has expired on September 20, 2010.