India extends telecoms gear quota for state-run ITI; shares jump

The cabinet has extended until September a requirement for its two state telecommunication carriers

RELATED ARTICLES

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 2:38 p.m., ITI shares were trading 6.7 percent higher at 16.85 rupees in a Mumbai market that was up 1.2 percent.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • The economic survey falls in step with the BJP’s election manifesto

    It’s always tough to find something wrong with the annual economic survey as it only articulates the government’s desire to set its house in order

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Arun Nigavekar

Why higher education needs innovation

India is such a great country that it creates complexity ...

Zehra Naqvi

We must overcome the fear of death

It is the biggest irony that the only thing that’s ...

Dharmendra Khandal

Jawai leopards and locals can coexist peacefully

At first glance, the Jawai landscape seems like a large ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture