ITI Ltd, easily one of the most incompetent Indian public sector units, put out its begging bowl and the Government of India has given it Rs 125 crore in the form of an interest-free loan.
The Bangalore-based ITI, with units in other parts of the country, is in dire straits and not in a position to even pay salaries to thousands of its employees.
For the nine months ended December 31, 2008, ITI reported sales of Rs 788.26 crore and a net loss of Rs 441.17 crore.
ITI has been on a downward spiral for several years and should have been euthanized in the mid-1990s itself.
ITI manufactures telecom switches, transmission, access and terminal equipments in addition to supplying communication products to the Indian armed forces.