New Delhi, Nov 9 (IANS): The Union Cabinet on Thursday extended the procurement quota of government-owned telephone equipment maker ITI Ltd for procurements made by the public sector companies of BSNL, MTNL and Bharat Broadband Network Ltd (BBNL) for three years.

"BSNL, MTNL and BBNL would be requested to extend the benefit of procurement quota to ITI for a period of three years," the Communications Ministry statement said.

According to the statement, the cabinet decided "to continue the Reservation Quota policy for ITI Ltd by reserving 30 per cent of the procurement orders placed by BSNL, MTNL and BBNL for ITI for the products manufactured by it".

It also approved reservation for those outsourced items in which there is a minimum 12 per cent value addition by ITI during 2018-19 and 16 per cent value addition in 2019-20 and 20 per cent value addition in 2020-21, the statement said.

"Provision of procurement quota from BSNL, MTNL and BBNL will provide further boost to-the order book of ITI and help in improving its financial health," it said.

The cabinet also approved reservation of 20 per cent of the orders for the turnkey projects like GSM network roll-out, WiFi and others of BSNL, MTNL and the BharatNet project of BBNL.

The validity of reservation benefit extended to ITI expired on May 31, 2018.