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)
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