Kerala - Palakkad   

Delay in revival package worries ITI employees

PALAKKAD: Undue delay by the Board for Industrial and Financial Reconstruction (BIFR) in finalising a revival package for the Indian Telephone Industries (ITI) has cost the premier public sector company dear, according to the Joint Forum of Officers and Employees of ITI Limited at Kanjikode here.

The company was referred to BIFR as ‘sick unit' in 2004. The Supreme Court had directed BIFR to submit the revival package to the Union government within three months in its order on January 18, 2011.

But the order was not honoured, the forum said here on Friday.

The forum in its memorandum blamed the “slow progress of activities in the Communication Ministry which has sought another three months for submitting the details before the next hearing of BIFR on July 21, 2011.”

BIFR has to get these details from the Ministry to finalise the package.

The memorandum said that ITI established in 1947 as the first public sector company of independent India was catering to the national telecommunication requirements single-handedly till the new telecom policy came in 1994. Then, the company was suddenly exposed to international competition and dumping policy of multinational corporations (MNCs). Devoid of own technology and experience in international marketing, it was never a level playing ground for ITI which slowly started sinking into loss. After eroding the entire net worth, the company was declared “sick” in 2004 and was referred to BIFR.

The memorandum said that “around 50,000 people consisting of 11,000 employees and their families spread over the six units of ITI Limited at Palakkad, Bangalore, Rae Bareli, Naini, Mankapur and Srinagar are totally dependant on the prospects of ITI.

The salaries of the employees were last revised 14 years ago and their perks and allowances and other fringe benefits were last revised in 1992.”

Recommendation

The memorandum said that ITI was also referred to the Board for Reconstruction of Public Sector Enterprises (BRPSE). But the Ministry of Communication failed to submit a revival package to them also.

The BRSPE had recommended a merger of ITI Limited, Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL) to cater to the manufacturing and service functionalities.

But this proposal too was pending with the Ministry of Communication, the union leaders said.

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