All, i am using vi editor in ubuntu with some hidden tricks. Following is the trick to cut from one existing file and paste into a new file:
1. Open the file you want to cut from.
2. Press m a for marking text or it will start marking the text from current position.
3. Move down upto which you want to cut the text
and use " a d ' a where a for storing all marked text in buffer in a and d for deleting it.
4. Now create the file with :e and type there "a p where a is again stored buffer and p for putting values.