Implementation of revival plan of ITI is "far from reality", a Parliamentary committee said while pressing upon the Telecom Department to work with Finance
Ministry for timely release of funds to upgrade the manufacturing infrastructure.
"With regard to the status of utilisation of fund especially under Plan, the committee observe that the implementation of Revival Plan of ITI as approved by CCEA is far from reality," said the Standing Committee on IT chaired by
BJP MP Anurag Singh Thakur in its report today.
As per the revival plan approved by CCEA, Rs 4,156.79 crore were to be released in two phases, consisting of Rs 1,892.79 crore as Grants-in-Aid for payment of statutory liabilities and Rs 2,264 crore as capex in the form of equity infusion by the year 2015-16.
The committee had earlier observed that due to delay in approval of the revival proposal and late release of funds by Ministry of Finance the implementation of the revival plan had been deferred by one year (2015-16).
The committee in its original report had said that the Telecom Department should impress upon Ministry of Finance to ensure requisite allocation of funds to enable Telecom Department to adhere to the disbursement schedule and also recommended that ITI should strive for optimal and efficient utilization of available funds to accomplish the activities and proposals planned.
In its latest report, the panel said that "if ITI is to be revived as approved by the CCEA, there is a need to strictly adhere to its disbursement schedule and no piecemeal infusion of fund as done currently would be sufficient for revival of ITI."
"Considering that status of manufacturing of telecom equipment in the country is extremely low and ITI can play major role in meeting the telecom equipment requirement in the country, the Committee desire that earnest efforts be made by the Department at the highest level and impress upon the Ministry of Finance with the detailed plan for expeditious release of funds so that ITI can upgrade the manufacturing infrastructure for its various plants," it said.
Till date, MoF has released only Rs 507 crore, comprising of Rs 192 crore under Plan, Rs 165 crore for payment of 39 months' pay revision arrears as per 1997 pay revision and Rs 150 crore to meet the establishment cost, it added.
Meanwhile, ITI today informed BSE that its Board of
Directors have approved the issue and allotment of 19.2 crore equity shares of Rs 10 each at par amounting to Rs 192 crore to President of India in lieu of amount received by it for revival.
"Further, as per Cabinet Committee of Economics Affairs approval, the Company has requested the administrative ministry to transfer requisite number of shares from President of India to Special National Investment Fund, to meet SEBIs Minimum Public Shareholding requirement," ITI said.
The state-run IT and telecom product maker has reported lowering of net profit on standalone basis to Rs 11.24 crore in the first quarter ended June 30, 2016 compared to Rs 40.73 crore a year ago.
The company also reported over two-fold increase in income from sales at Rs 325.9 crore during the reported quarter compared to Rs 125.54 crore in corresponding period of 2015-16.
Shares of ITI closed at Rs 29.10 a unit, down by 2.84 per cent at the end of trading on BSE today.
