NEW DELHI Jan 15 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
Most of India's telecommunication gear are sourced from
foreign manufacturers given the limited local manufacturing
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)