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Intel Cap may pick up stake in ITI factories
By siliconindia
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Tuesday, 01 September 2009, 18:37 IST
Bangalore: U.S.-based Intel Capital is expected to bid for a stake in the factories owned by ITI (Indian Telephone Industries), to spread WiMax technology in India. Sources said that one of the issues that could determine Intel's participation is whether the Government is prepared to increase the quota for products manufactured by ITI, reports the Business Line.
Intel is likely to put together a consortium of companies that could be interested in using the ITI facilities for manufacturing WiMax-based network hardware and consumer premise equipment. At present, BSNL and MTNL buy only 10 percent of their total requirements from ITI. Sources said that multinational firms such as Intel could get interested if the Government ensures that at least 30-40 percent of Government run agencies such as BSNL, Railways and Defence buy equipment from the Indian manufacturer.
Intel Capital's Vice-President, Sriram Viswanathan said that India had an opportunity in promoting local manufacturing if the Government provided enough incentives.
Apart from Intel, Chinese manufacturer Huawei and Franco-American Alcatel-Lucent are interested in the ITI factories. The Government proposes to set up three special purpose vehicle companies for divesting stake in three of the six manufacturing plants owned by ITI. The three plants are located in Rae Bareli, Naini and Bangalore which are involved in producing WiMax modems and optical transmission equipment.
