₹3,473-crore ITI land in K R Puram identified for monetisation to clear debt and dues

The Union Communications Ministry has identified 91.43 acres of ITI land in Bengaluru for monetisation to repay bank loans and pending employee and statutory dues.

The Centre has identified 91.43 acres of land belonging to Indian Telephone Industries (ITI) Limited in Bengaluru for monetisation, with an estimated value of ₹3,473.14 crore. The move is aimed at clearing the company’s bank loans and long-pending employee and statutory dues.

The information was shared in the Lok Sabha on December 17 by Union Minister of State for Communications Pemmasani Chandrasekhar while replying to a question raised by Bengaluru South MP Tejasvi Surya. The minister stated that the land parcels are located in and around the ITI township in Krishnarajapuram, Bengaluru Urban district.

He said the government is working with ITI Limited to monetise certain vacant land parcels, and the revenue generated will be used primarily to repay bank borrowings and clear statutory liabilities, including salary and retirement-related dues.

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The monetisation exercise involves four land parcels. The largest is a 44.03-acre parcel valued at ₹1,651.20 crore. Another 21-acre parcel in the ‘B’ area of the ITI township is proposed to be transferred to the Goods and Services Tax (GST) Department, which is expected to generate ₹823.20 crore.

Additionally, a 10.28-acre land parcel in B Narayanapura village, valued at ₹357.57 crore, and a 16.12-acre parcel within the ITI township, estimated at ₹641.17 crore, have also been identified for monetisation.

Providing details of ITI’s financial position, the minister said the company has an order book worth ₹18,746 crore. In FY25, ITI reported a turnover of ₹4,323 crore and posted a positive EBITDA of ₹25 crore, though it recorded a net loss of ₹233 crore.

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ITI’s outstanding bank loans currently stand at ₹1,325 crore. Statutory and retirement-related dues, including pending salaries, amount to ₹339 crore.

As a government-owned enterprise, ITI has received financial support in the past. In February 2014, the Cabinet Committee on Economic Affairs approved a revival package of ₹4,156.79 crore. This included ₹2,264 crore as equity infusion for capital expenditure and ₹1,892.79 crore as grants for settling liabilities. An additional ₹299.69 crore was later approved to clear statutory dues.

The minister said the proceeds from land monetisation will mainly be used to repay bank loans and clear outstanding statutory obligations. He added that ITI has executed projects worth several thousand crore rupees over the last five years and is working to improve its financial position through ongoing projects and timely recovery of dues.

He also noted that ITI’s workforce has reduced steadily over the years. As of December 1, the company has 1,240 employees, including 623 regular and 617 contractual staff, compared to 2,542 employees in 2021.

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