New Delhi: The government is likely to infuse Rs 500 crore in the ailing ITI Ltd, earlier known as Indian Telephone Industries Ltd, in a bid to revive the public sector undertaking (PSU).
Established in 1948 and later converted as the first PSU of the country to assist the government in telecommunications, ITI offers a complete range of telecom products and solutions covering switching, transmission, access and subscriber premises equipment.
Government holds majority equity stake in ITI Ltd and the company was referred to the BIFR in 2004-05 and declared a sick company.
The government is committed to revive ITI and is likely to infuse Rs 500 crore to step up its resources for operations and help the PSU compete in the market, people in know of the development said.
The plan is to upgrade its manufacturing infrastructure to help the firm produce new technology products in telecom and increase its market share, they added.
In February this year, the Cabinet Committee on Economic Affairs (CCEA), headed by then Prime Minister Manmohan Singh, had approved a revival plan of ITI based on recommendations of Board for Reconstruction of Public Sector Enterprise (BRPSE).