The Delhi high court on Thursday extended its interim stay on award of contract by state-run Bharat Sanchar Nigam Ltd for its Rs 20,000 crore (Rs 200 billion) project, to add 45 million lines in its GSM network till February 12.

A bench comprising Justice Swantater Kumar and Justice H R Malhotra fixed February 12 as the date for hearing Motorola's petition challenging BSNL's decision to disqualify it from the bidding process of the GSM contract.

Motorola had challenged its disqualification from the bidding process for supply of equipment to BSNL. The US firm was disqualified on technical grounds on October 7, just two days before opening of financial bids.

The equipment supplier later challenged the decision in the high court. BSNL in its reply had cited the report of Committee for Evaluation of Tender and contended that Motorola was not eligible as it failed to satisfy the techno-commercial aspect of the tender.

The PSU had said that Motorola failed on financial parameters. As per conditions, a bidder must be a profit earning company in the last two years but Motorola did not meet this criterion as it had suffered a loss almost Rs 37 crore (Rs 370 million) in 2004-05, BSNL had said.

Swedish company Ericsson had emerged the lowest bidder, followed by Nokia of Finland.