ITI shares surge on order quota extension
NEW DELHI (Reuters) - Shares in Indian state-run telecom gear maker ITI Ltd jumped nearly 17 percent after the government extended until Sept. 2010 a requirement for state-run telecoms to source 30 percent of equipment orders from it.
At 0905 GMT, shares in ITI were up 12.4 percent at 51.20 rupees, having risen as much as 16.8 percent to 53.20 rupees, their highest since late January 2008.
The quota requirement for Bharat Sanchar Nigam Ltd and Mahanagar Telephone Nigam was retrospectively extended for a year from Sept. 21, the government said in a statement.
The quota policy for the state firms' orders had lapsed on Sept. 20, 2009.
BSNL and MTNL will have to pay 70 percent in advance for orders with ITI to meet the equipment maker's working capital needs, the government said.
The telecoms ministry is working on a revival package for ITI, which had losses of 32.19 billion rupees ($690 million) for the year to March 2009.
(Reporting by Mayank Bhardwaj; Editing by John Mair)
(For more news on Reuters Money visit www.reutersmoney.in)
- Tweet this
- Share this
- Digg this
- China should set lower 2015 GDP growth target of 6.5-7 pct - IMF
- One dead, one wounded in shooting in Chicago financial district
- Netanyahu vows to complete Gaza tunnels destruction
- U.S. says hopeful of WTO deal with India only hours before deadline
- UPDATE 3-Argentine assets drop after default, "credit event" in balance
The United States said on Thursday it was hopeful that differences between India and much of the rest of the world over a major trade agreement could be resolved in time, with only hours remaining before the deal has to be signed. Full Article
ONGC, Oil India bid $1.5 bln for stake in Murphy Oil's Malaysia assets - sources Full Article