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DoT plans fund for domestic companies

DoT plans fund for domestic companies
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The telecom department plans to set up a Rs 10,000-crore fund that will provide loans at  
5 per cent interest ra­tes to indigenous companies that enter the networks manufacturing space. This is because the new telecom policy will mandate that mobile phone com­panies source at least 80 per cent of their networks from domestic manufacturers within the next five years. Also on the cards are a Rs 2,500-crore Telecom Entrepreneurship Development Fund and a Rs 5,000-crore Research Development Fund that will 'fund projects with clear  
focus towards patents'.

The telecom department has also sought Rs 6,830 crore from the finance ministry to turnaround Indian Telephone Industries (ITI). ITI's revival package and establishing different funds are on agenda for the next meeting of the telecom commission, the highest decision making body of the communications ministry.

These funds are aimed at boosting domestic output in this strategic sector and ensuring that India becomes a manufacturing hub for telecom hardware.

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