Steel Authority of India Ltd (SAIL) Chairman Mr. S.K. Roongta handed over a cheque for Rs. 265.85 crore towards the amount of final installment of dividend payable to the Government of India for financial year 2005-06, at the rate of 7.5% of the company’s paid-up share capital, to Steel Minister Mr. Ram Vilas Paswan here today.
With this SAIL has paid total dividend of Rs. 708.94-crore for 2005-06 to the Government. Interim dividend at the rate of 12.5% was paid by the company earlier this year, taking the total dividend payout to 20% of the paid-up share capital of the company. This is the second highest dividend ever paid by SAIL, which had achieved a net profit after tax of Rs. 4,012.97 crore in 2005-06.
SAIL shareholders had approved the final dividend in the company’s AGM held on 22nd September 2006. The total dividend (excluding dividend tax) paid to shareholders by SAIL thus amounts to Rs. 826.08 crore in addition to Rs. 115.86 crore paid by way of dividend tax.
SAIL contributed Rs. 7,953 crore to the Central Government kitty during 2005-06 by way of excise duty, custom duty, corporate tax (including fringe benefit tax), and dividend (including dividend tax). This was an increase of nearly 62% from Rs. 4,917 crore paid by SAIL in 2004-05.
Mr. R.S. Pandey, Secretary, Ministry of Steel, Mr. K.K. Khanna, Director (Technical) SAIL, and other senior officials of the Steel Ministry and SAIL were also present at the function held on the occasion.
SAIL’s debt-equity stood at 0.35:1 as on 31st March 2006 following reduction in total debt by Rs. 1,472 crore during 2005-06. The company is presently executing a massive growth plan that envisages investment to the tune of Rs. 37,000 crore for expansion and modernisation of SAIL plants and units taking its steel production capacity to 22 million tonnes. Projects worth Rs. 18,500 crore are currently in various stages of implementation.