Govt approves Procurement Quota to M/s ITI Ltd. made by BSNL, MTNL and BBNL

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AMN / NEW DELHI

The Cabinet Committee on Economic Affairs chaired by the Prime Minister Narendra Modi in the present day authorized Procurement Quota to M/s ITI Ltd. in procurements made by BSNL, MTNL and BBNL

The Cabinet Committee on Economic Affairs (CCEA) authorized the next proposal of Department of Telecommunications relating to continuation of Procurement Quota for M/s ITI Limited:

To proceed the Reservation Quota coverage for M/s ITI Ltd. by reserving i) 30% of the procurement orders positioned by BSNL, MTNL and BBNL for M/s ITI Ltd. for the merchandise manufactured by it and for these outsourced gadgets in which there’s a minimal 12% worth addition by M/s ITI throughout 2018-19 and 16% worth addition in 2019-20 and 20% worth addition in 2020-21 and
ii) 20% of the orders for the turnkey tasks (like GSM community roll-out, Wi-Fi and so forth. of BSNL & MTNL and BharatNet mission community roll-out, and so forth. of BBNL).
ITI would settle for orders below reservation quota solely after the value is thought and if the identical is commercially viable.
ITI shall train its possibility below Reservation Quota inside 15 days of bid opening.
The aforesaid coverage measures shall stay in power for a interval of three years with impact from the date of approval of CCEA. The coverage shall once more be reviewed contemplating the monetary well being of ITI after the expiry of this era.

Background:

M/s ITI Limited is a listed Schedule “A” Centra! Public Sector Enterprise, below the executive management of Ministry of Communications, -Department of Telecommunication. The Company is a provider for the Defence communication and networking wants and a significant provider of encryption’merchandise to Indian Army. The main prospects are BSNL, MTNL, Defence, Paramilitary forces and State Governments. ITI has six manufacturing items at Bangalore (Karnataka), Raebareli, Naini and Mankapur (all in UP), Palakkad (Kerala) and Srinagar (J&Ok).

As the Company had turn out to be Sick in 2004 and was below reference-to BIFR, GCEA. in its assembly held on 12-02-2014 authorized the proposal to present monetary help of Rs. 4156.79 Crore for its revival. In order to allow ITI to survive within the aggressive atmosphere of Telecom manufacturing, BSNL and MTNL have been extending reservation quota of 30%. quantify to ITI Ltd. The validity of reservation profit prolonged to ITI has expired on 31.05.2018.

BSNL, MTNL and BBNL shall be requested to prolong the good thing about procurement quota to ITI Limited for a interval of three years.

Major Impact :

The extension of the good thing about i) 30% of the procurement orders positioned by BSNL,MTNL and BBNL for M/s ITI Ltd. for the merchandise manufactured by it and for these outsourced gadgets in which there’s a minimal 12% worth addition by M/s ITI throughout 2018-19 and 16% worth addition in 201.9-20 and 20% worth addition in 2020-21 and ii) 20% of the orders for theturn key tasks (like GSM community roll-out, Wi-Fi and so forth. of BSNL & MTNL and BharatNetproject community roll-out, and so forth. of BBNL) will guarantee sufficient orders for FLT for the productionactivities. Provision of procurement quota from BSNL, MTNL and BBNL will present furtherboost to-the order e-book of ITI and assist in bettering its monetary well being.

ITI would be the beneficiary of the choice. It may additionally assist in producing extra employment alternatives within the Company notably within the area of latest Telecom applied sciences.

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