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Cabinet Committee on Economic affairs today gave its approval for giving the financial assistance, to M/s. ITI Ltd. for bringing the Company from the ambit of Board of Industrial and Financial Re-construction (BIFR) as sick company, as per following:
(i) Interest free loan of Rs.601.53 crore (Rs.458 crore for VRS, Rs.50 crore for capital expenditure and Rs.93.10 crore to meet PF dues) during the year 2004-05 and simultaneously writing it off from the Government account.
(ii) Writing off interest/penal interest of Rs.23.67 crore on Government
(iii) Equity infusion of Rs.200 crore during 2004-05
(iv) Sanction of Rs.100 crore for VRS for the year 2005-06 as interest free loan
(v) Sanction of Rs.100 crore for capital expenditure for the year 2005-06 as interest free loan for a period of five years.
The financial package of Rs.1001 crore was given approval with the rider that the Ministry of Communication and IT will come back to CCEA in one month’s time with details regarding Technology tie up and Technology transfer, if any.
This decision will not only revive M/s. ITI Ltd. and strengthening the indigenous manufacturing base of Telecom equipment in the country but also bring out the Company from the ambit of BIFR.
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