SAIL receives Rs 4.5 crore dividend from NSPCL

Press Release
New Delhi

NTPC-SAIL Power Supply Company Ltd (NSPCL), a 50:50 joint venture between Steel Authority of India Ltd (SAIL) and National Thermal Power Corporation (NTPC), today paid Rs. 3 crore to SAIL as final dividend for the year 2006-07. SAIL Chairman Mr. S.K. Roongta received the cheque from NSPCL Chairman Mr. R.C. Srivastava. NSPCL had paid interim dividend of Rs. 1.5 crore to SAIL in March 2007 before declaring a total dividend equivalent to 23% of profit after tax. The performance of the joint venture company has been continuously improving year by year and it has paid dividend continuously since inception in 2001.

NSPCL registered a net profit after tax of Rs 38.97 crore in 2006-07 (higher by 31% over the previous year) on a net worth of Rs. 867.98 crore. Bhilai Electric Supply Co. Ltd. – another 50:50 joint venture of NTPC and SAIL – was merged with NSPCL recently.

 The company is presently implementing a greenfield power expansion project of 2x250 MW at a cost of around Rs. 3,000 crore at Bhilai. The first unit is expected to be operational by early 2008. SAIL will receive about 280 MW of power from this unit which will provide security in meeting the enhanced level of power requirement of Bhilai Steel Plant.

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