India extends telecoms gear quota for state-run ITI; shares jump
NEW DELHI Jan 15 (Reuters) - India's cabinet has extended until September a requirement for its two state telecommunication carriers to buy part of their equipment from state-run telecoms gear maker ITI Ltd, sending the company's shares as much as 13 percent higher.
Bharat Sanchar Nigam Ltd and Mahanagar Telephone Nigam Ltd -- the two state carriers -- will have to reserve 20 percent of their network rollout contracts for ITI, a government statement said, in a move aimed to prop up the money-losing gear maker.
For products made by ITI, the two carriers must buy at least 30 percent of their requirement from the company.
"This will enable ITI to survive in the competitive environment," the statement issued after a meeting of the cabinet said.
Most of India's telecommunication gear are sourced from foreign manufacturers given the limited local manufacturing capability.
By 0908 GMT, ITI shares were trading 6.7 percent higher at 16.85 rupees in a Mumbai market that was up 1.2 percent. (Reporting by Devidutta Tripathy; editing by Malini Menon)
- Children's corpses reveal desperate attempts to escape Korean ferry |
- Russia says it will respond if Ukraine interests attacked |
- 'Bridgegate' scandal threatens next World Trade Center tower
- Obama seeks to ease Asian allies' doubts during visit to Japan |
- NYPD Twitter campaign backfires, thousands of negative tweets