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:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Diplomacy

REUTERS SHOWCASE

Maruti Results

Maruti Results

Maruti Suzuki says profits helped by sentiment, not growth.  Full Article 

Tracking the Monsoon

Tracking the Monsoon

Monsoon turns patchy after revival.  Full Article 

ICICI Profit Up

ICICI Profit Up

ICICI Bank Q1 net profit up 17 percent, beats estimates.  Full Article 

Pharma Sector

Pharma Sector

FDA raises concern over drug production process at Cadila  Full Article 

Coal India

Coal India

Some Coal India mines may be run by foreign firms - minister  Full Article 

Fuel Prices

Fuel Prices

IOC to cut petrol prices by 1.5 pct from Friday  Read 

Economic Pulse

Economic Pulse

India's infrastructure output growth hits 9-month high in June  Full Article | Related Story 

Joint Bid

Joint Bid

ONGC, Oil India bid $1.5 bln for stake in Murphy Oil's Malaysia assets - sources  Full Article 

Reuters India Mobile

Reuters India Mobile

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