Rahul Gandhi’s question reveals ITI Rae Bareli’s existential crisis with turnover of just Rs 20 crore

Rahul Gandhi and ITI

ITI was considered a lifeline for Rae Bareli, who is now facing an existential crisis. The painful truth about ITI came to light from questions raised by Leader of Opposition in the Lok Sabha Rahul Gandhi. Telephone Industries of India’s Rae Bareli unit, which has an annual turnover of hundreds of millions of rupees, recorded a turnover of just Rs 20 crore this fiscal. The factory, established in the public sector 51 years ago, now has only 3% of its permanent workforce. The factory received neither enough orders nor a revival plan from the central government.

ITI’s Rae Bareli unit is still waiting to receive financial assistance of Rs 300 crore. The government’s reply to a question asked by Rahul Gandhi, leader of the opposition in the Lok Sabha, sheds light on ITI’s predicament. The factory once had 7,000 regular employees.

Replying to a question raised by Congress MP Rahul Gandhi, the government said that currently ITI’s Rae Bareli unit has only 322 employees. There are currently 173 regular employees, 68 contract workers and 83 informal employees.

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Government’s answer to Rahul Gandhi’s question

Leader of Opposition Rahul Gandhi asked the Lok Sabha what steps the government had taken to pay salaries to employees on time. In response, the government said it was taking necessary measures to pay employees on time. Legal aid worth Rs 4,456 crore has been approved so far. Rs 4,157 crore has been released for various matters. More than half of that goes toward dues and salaries. It can be seen from the government’s reply that financial assistance of approximately Rs 300 crore is still to be implemented. The central government has no interest in disbursing this financial aid.

The Rae Bareli unit of ITI was established in 1973.

The Rae Bareli unit of the public sector ITI was established by the late Indira Gandhi on October 6, 1973 during her tenure as Prime Minister. Crossover units were originally produced here for switching basic telephones. As times changed, the production of electronic equipment C Dot began. ITI is currently manufacturing OFC cables for marine and railway applications. Telephone Industries of India was established in Palghat, Mankapur (Gonda), Raebareli, Bangalore, Naini (Prayagraj) and Jammu.

Sonia Gandhi offers Rs 8,000-crore revival package

As an MP during the UPA regime, Sonia Gandhi had given a revival package of around Rs 8,000 crore to ITI’s Rae Bareli unit in 2009-10. Much of this goes toward employees’ salaries and dues, so factories can’t update according to new markets.

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