ITI Ltd, a state-run telecom equipment maker, may soon get the much-awaited Rs 4,100 crore revival package from the government.

According to a news report published in Mint, Telecom department has almost finalized the note on the revival package and will soon send it to Cabinet Committee on Economic Affairs (CCEA) for a final decision. The proposal involves a mixture of loans and equity infusion.

The revival was first proposed by the Board for Reconstruction of Public Sector Enterprises (BRPSE), after which the telecom department sent a draft cabinet note for approval from all relevant ministries, including the finance, home and the defence ministries. 

The Board of Industrial and Financial Reconstruction gave its approval to the proposal in June.

According to government officials the assistance would be mostly non-cash and would include loan write-offs. The revival plan would include disbursement of Rs 460 crore as financial assistance for ongoing and expected projects and Rs 995.79 crore for pending liabilities and upgrading of its plants. 

There was also a proposal to make the company a sole supplier to the armed forces. The plan was, however, rejected.

ITI has more than 8,500 employees and has factories in Naini, Rae Bareli, Mankapur (in Uttar Pradesh), Bangalore, Palakkad (Kerala) and Srinagar. It also has research and development centres in Bangalore, Naini and Mankapur.

For the quarter ended June 30, ITI’s revenue fell 12.5% to Rs 117.84 crore from previous year.  Its shares rose 0.98% to Rs 14.40 on August 14 on BSE, while the exchange’s benchmark Sensex gained 0.72% to 19,367.59.

The state-owned firm had received annual grants of Rs 860 crore over 2001-02 to 2010-11. It also received a waiver of loans and interests and a financial package of Rs 2,820 crore in 2009-10.