Shares of state-owned companies such as HMT, ITI and Scooters India have rallied more than 9% each on reports that the government is likely to revert to the policy of using 25% of the disinvestment proceeds for reviving sick public sector undertakings

Telecom company ITI Ltd has reported a net loss of Rs 382 crore for the year 2010-11, the lowest it has recorded in eight years.

"This is against Rs 185.88 crore (loss) registered for H1 2009-10," the Bangalore-headquartered company said in a statement.

As a central government scheme to revive industrial training institutes in association with private industries failed to take off, the Madhya Pradesh government has demanded that private engineering colleges run industrial training institutes (ITIs) and

ITI has rallied 10% to Rs 46.55 on reports that the government asked the telecom companies BSNL and MTNL to procure 30% of their equipment from the state-run telecom equipment maker for another two years to help the company to cut its debt.

In a bid to rescue debt-ridden ITI, the government today asked telecom companies BSNL and MTNL to procure 30 per cent of their equipment from the state-run telecom equipment maker for another two  years.

ITI is trading 5% higher at Rs 43 on reports that the government plans to invite fresh bids for a controlling stake, after investors stayed away in the previous attempt citing stringent norms that prevented a possible turnaround of the ailing

The company had recorded a net loss of Rs 107.78 crore in the corresponding quarter of the 2009-10 fiscal, ITI said in a filing to the Bombay Stock Exchange (BSE).

The stock jumped 11 per cent to Rs 50.65, after the government approved a proposal under which the telecom equipment manufacturer will continue to get orders for 30 per cent of the product requirement of BSNL and MTNL.