Telecom ministry wants defence PSU status for ITI

In an attempt to revitalize the ailing state-run IT and
telecom products manufacturer ITI, the telecom ministry has requested defence
Minister AK Antony to accord Defence PSU status to the company.

If the requested status is given to ITI, it will get
preference in the supply of technology products required by the defence services.

“Kindly requested to consider case for inclusion of
ITI as a Defence PSU for the purpose of procurement of goods and services
manufactured and developed by ITI,” Telecom Minister Milind Deora said in
a letter to Antony.

Deora’s letter said that ITI is capable of bridging the
deficit of capacity in the order books of existing Defence PSUs by utilising
its existing infrastructure for the manufacture of electronic and mechanical
systems, according to a report in Manoramaonline. 

Deora had also mentioned that the Telecom Ministry is in
the process of bridging the fund requirement of ITI for procurement of new
equipment and the upgrade of existing infrastructure.

ITI has accomplished major defence projects in the past,
namely ASCON-1,2 and 3 and also LICO-VSAT. Additionally, the ITI has made and
commissioned most of the encryption equipment used by the armed

The letter also said that ITI has unutilised
infrastructure which can address the requirements of the Ministry of Defence
and can augment the production capacity required to meet the deliveries of the
armed forces.

At present, there are eight PSUs that have been given
Defence PSU status in the supply of various products to the Indian armed forces
as part of the government’s strategy.

By Team
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