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:
  • Most Popular
  • Most Shared

Record Deal

REUTERS SHOWCASE

Coal Industry

Coal Industry

India to allow foreign firms mine and sell coal - coal secretary.  Full Article | Related Story 

Ranbaxy in U.S.

Ranbaxy in U.S.

U.S. court overturns bid by Ranbaxy to block launch of rival generic drugs.  Full Article 

Edible Oil

Edible Oil

Indians get taste for branded edible oil as prices drop, incomes rise.  Full Article 

Financial Tech CEO

Financial Tech CEO

Financial Tech founder steps down as CEO   Full Article 

Canpotex Deal

Canpotex Deal

Canpotex signs potash sales deals to India  Full Article 

Tech Acquisition

Tech Acquisition

Tech Mahindra to buy U.S.-based network services operator for $240 million   Full Article 

Fired for Overbilling

Fired for Overbilling

Infosys unit's overbilling Apple led to exit of top execs - sources.  Full Article 

Real Estate Investment

Real Estate Investment

JM Financial subsidiary gets $87 mln from Vikram Pandit-led fund  Full Article 

Reuters India Mobile

Reuters India Mobile

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