Cabinet approves quota to ITI Ltd. in procurements made by BSNL, MTNL and BBNL

The Cabinet Committee on Economic Affairs (CCEA) on Thursday approved the Procurement Quota to ITI Ltd. in procurements made by BSNL, MTNL and BBNL.
The CCEA granted its approval to continue the Reservation Quota policy for ITI Ltd. by reserving 30% of the procurement orders placed by BSNL, MTNL and BBNL for the products manufactured by it and for those outsourced items in which there is a minimum 12% value addition by ITI during 2018-19. 
It also okayed the 16% value addition in 2019-20 and 20% value addition in 2020-21 and 20% of the orders for the turnkey projects (like GSM network roll-out, Wi-Fi etc. of BSNL & MTNL and BharatNet project network roll-out, etc. of BBNL).
ITI would accept orders under reservation quota only after the price is known and if the same is commercially viable. It will exercise its option under Reservation Quota within 15 days of bid opening.
The policy measures will remain in force for a period of three years with effect from the date of approval of CCEA. The policy will again be reviewed considering the financial health of ITI after the expiry of this period, an official press release said.
ITI Limited is a listed Schedule "A" Central Public Sector Enterprise, under the administrative control of the Ministry of Communications-Department of Telecommunication. The company is a supplier for the Defence communication and networking needs and a major supplier of encryption products to the Indian Army. 
Its major customers are BSNL, MTNL, Defence, Paramilitary forces and State Governments. ITI has six manufacturing units at Bangalore (Karnataka), Rae Bareli, Naini and Mankapur (all in UP), Palakkad (Kerala) and Srinagar (Jammu and Kashmir).
As the company had become sick in 2004 and was under reference-to BIFR, the CCEA, in its meeting held on February 12, 2014, approved a proposal to provide financial assistance of Rs 4156.79 crore for its revival. 
In order to enable ITI to survive in the competitive environment of telecom manufacturing, BSNL and MTNL have been extending reservation quota of 30% to ITI Ltd. The validity of reservation benefit extended to ITI had expired on May 31, 2018.
BSNL, MTNL and BBNL will be requested to extend the benefit of procurement quota to ITI Limited for a period of three years. 
"ITI  will be the beneficiary of the decision.  It may also help in generating more employment opportunities in the company particularly in the field of new telecom technologies," the release added.

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