CCEA approves procurement quota for ITIL
The Indian Telephone Industries will continue to get 30 percent procurement orders and 20 percent network roll out orders placed by state-run telecom firms till September this year.
The Cabinet Committee on Economic Affairs Wednesday approved a telecommunications department proposal to this effect.
"This approval will help ITI Limited to continue getting 30 percent of procurement orders placed by Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL) for products manufactured by ITI Ltd and 20 percent of the network roll out orders for their turn key projects (like GSM network roll-out) of BSNL and MTNL," an official release said after the CCEA meeting.
The policy measures will remain in force for a period of one year with effect from Sep 21, 2013, and will again be reviewed considering the financial health of ITIL after the expiry of this period.
BSNL and MTNL will give 10 percent advance against the orders placed on ITIL, so that it does not face the problem of working capital for execution of orders, subject to adequate safeguards for proper utilisation of these advances, said the release.
(Posted on 15-01-2014)
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