The Indian company has entered into a technical tie-up with Alcatel of France for manufacturing of three million telephone lines, Rajya Sabha was informed on Thursday.
Communications and Information Technology Minister Dayanidhi Maran said while the previous NDA government had contemplated closing down ITI and had even offered VRS for its staff, the UPA government took a decision to revive it.
As per technical tie-up between the French and ITI, Alcatel will supply one million lines to ITI while three million lines would be manufactured by the ITI, the minister said.
Maran said government had allowed 100 per cent FDI in manufacture of telecom equipment and Telecom majors such as Alcatel, Elcoteq, Nokia LG and Ericsson had decided to manufacture equipment in India.
He said there was also no restriction on Indian companies to manufacture these equipment.
While Nokia and Ericsson would produce handsets, Alcatel would set up a base station, Maran said.