MILAN, March 14 (Reuters) - Telecom Italia's (TIM)

business plan for the new company emerging from the

sale of the former phone monopoly's fixed line network is

sustainable, Italy's Industry Minister Adolfo Urso said on

Thursday.

Shares in the former phone monopoly plunged last week after

TIM unveiled its three-year strategy and outlook for the

business emerging after the network sale to U.S. fund KKR

, piling pressure on TIM Chief Executive Pietro Labriola.

Backed by the Italian government and worth up to 22 billion

euros ($24 billion), the deal is opposed by TIM's top investor

Vivendi, which has questioned the sustainability of the

remaining business and is fighting the sale in court.

"We believe the project presented in the business plan is

absolutely sustainable", Urso said during a press conference at

the end of the G7 industry summit in Verona.

In a separate statement, KKR said it is pressing ahead with

preparatory activities for the buyout of TIM's network and

working with other parties towards the summer 2024 timeframe for

finalising the deal, which is subject to European Union

antitrust authorisation.

"The preparatory activities....are advancing well in

cooperation with the TIM management team," a spokesperson for

the U.S. fund said.

"All parties are still working against the summer 2024

timeframe for closing."

($1 = 0.9186 euros)