ITI shares surge on order quota extension

NEW DELHI Thu Dec 24, 2009 3:06pm IST

Related Topics

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)

FILED UNDER:

REUTERS EXCLUSIVE

Reuters Showcase

Inflation Targeting

Inflation Targeting

India sets inflation target in monetary policy overhaul.  Full Article 

Rich List

Rich List

Bill Gates tops Forbes rich list, Michael Jordan joins.  Full Article 

Tough Task

Tough Task

India needs sustained GDP growth of 9-10 percent - Jaitley.  Full Article 

Budget 2015

Budget 2015

Budget announcements and reactions from the industry  Full Coverage 

PMI Data

PMI Data

Factory activity growth slows to five-month low in Feb  Full Article 

Coal Auction

Coal Auction

India examines coal mine bids amid reports of discrepancies  Full Article 

Ola Buys Rival

Ola Buys Rival

Ola buys rival TaxiForSure for $200 million  Full Article 

Environment Watch

Environment Watch

Deforestation could shift monsoons, leaving India high and dry.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage