ITI to monetise 91-acre Bengaluru land parcel to raise Rs 3,473 crore, clear dues and loans

About 80 contract workers at ITI’s KR Pura unit, some with three to 35 years of service, have been on strike since December 2021 after the management barred them from entering the Bengaluru factory.

Indian Telephone Industry (ITI) Ltd has identified 91.43 acres of land, with an estimated value of Rs 3,473.14 crore, in Bengaluru for monetisation, a move aimed at clearing the debt and employee dues of the Union communications ministry unit.

Replying to a question by Bengaluru South MP Tejasvi Surya in the Lok Sabha on December 17, Union minister of state for communications Pemmasani Chandrasekhar said the parcels are located in and around the ITI Township in Krishnarajapura in the Bengaluru Urban District.

“The government is working with ITI Limited to monetise certain vacant land parcels, so that the proceeds can be used to clear bank loans and pending statutory dues,” Chandrasekhar said.

There are four parcels, the biggest of which is a 44.03-acre plot valued at Rs 1,651.20 crore. Another 21-acre parcel in the b-area of ITI Township, proposed to be transferred to Goods and Services Tax (GST) department, is estimated to fetch Rs 823.20 crore. ITI also plans to monetise a 10.28-acre plot in B Narayanapura village valued at Rs 357.57 crore and a 16.12-acre plot in the ITI township estimated at Rs 641.17 crore.

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The minister said ITI’s order book stands at Rs 18,746 crore. In FY25, it reported a turnover of Rs 4,323 crore and posted a positive EBITDA of Rs 25 crore but reported a net loss of Rs 233 crore.

Its bank borrowings stand at Rs 1,325 crore, while statutory and retirement dues, including pending salaries, amount to Rs 339 crore.

To support the PSU, Cabinet Committee on Economic Affairs approved an assistance of Rs 4,156.79 crore in February 2014.  While Rs 2,264 crore was allocated for capital expenditure through an equity injection and Rs 1,892.79 crore was a grant to settle liabilities. An additional Rs 299.69 crore was later approved to clear statutory dues.

The proceeds from land monetisation would be used primarily to repay bank loans and clear pending statutory obligations, the minister said. ITI, which executed works worth thousands of crores of rupees over the past five years, is working to overcome challenges by generating profits from ongoing projects and ensuring early payment of dues.

ITI’s workforce has steadily declined over the past five years. As of December 1, the company had 1,240 employees, including 623 regular and 617 contractual staff, down from 2,542 employees in 2021.

Protests continue

Hemant Kumar of Karnataka General Labour Union-ITI Unit, affiliated to AICCTU, told Moneycontrol that monetising prime land in Bengaluru was a “well-calculated move” to help private firms.

"BJP-led Union government is keen on selling this prime land, located next to KR Pura railway and Metro stations and along the tech corridor, citing losses, effectively transferring it to private firms,” he said.

About 80 contract workers, some with three to 35 years of service, were barred from entering ITI’s Bengaluru factory in December 2021 after they unionised and demanded wages on time. The workers have been striking work since and moved court against the decision.

According to Kumar, the labour commissioner had directed ITI to continue without altering service conditions, but the company said the manpower contract had expired and the workers would have to be rehired through a new contractor. "The High Court had also ruled in our favour, but the management is reluctant to reinstate the employees."