UPDATE 1-India's Idea Cellular tying up $1.2 bln of funding

MUMBAI, July 23 (Reuters) - Idea Cellular Ltd (IDEA.BO), India's fifth-largest mobile operator, is securing up to 60 billion rupees ($1.2 billion) which should cover its funding needs until the end of March 2011, a senior official said on Thursday.

The funds would be used on expanding Idea's operations, including its new service areas in the eastern state of West Bengal and other circles in the country's northeast.

"We are in the process of tying up these funds. This should look after our funding requirements for this year and the next," Chief Financial Officer Akshaya Moondra told reporters after Idea had reported a 15 percent rise in June quarter net profit to 3.1 billion rupees. [ID:nBMA003425]

The funds were being raised from export credit agencies in Finland and Sweden, he said, adding the company already had approval from its lenders to raise 95 billion rupees.

"We are adequately funded as of now," he said.

In the 2008/09 financial year (April-March), the company had spent about 54 billion rupees.

Idea added 4.1 million mobile users in the June quarter, taking its customer base to 47.1 million.

Moondra said there were plans to eventually list telecom tower company Indus Towers, in which Idea's unit, Aditya Birla Telecom, holds 16 percent, although it was not expected to happen until the second half of calendar year 2010.

Vodafone Essar (VOD.L) and Bharti Airtel (BRTI.BO) each hold 42 percent in Indus Towers.

Idea is in the process of merging its own tower unit, which was spun-off in 2008 , with Indus, Moondra said.

Shares in Idea, valued at $4.8 billion, rose 3.9 percent to 77.80 rupees in a Mumbai market .BSESN that rose 2.6 percent. ($1=48.4 rupees) (Reporting by Janaki Krishnan; Editing by John Mair)