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STC pays dividend cheque to GOI 

New Delhi, December 27, 2005. 

Union Minister of Commerce & Industry, Kamal Nath received two dividend cheques of Rs. 4,09,60,200/- each from the Chairman & Managing Director of State Trading Corporation of India Ltd. (STC), Dr. Arvind Pandalai, here today. The first cheque was on account of final dividend payment of 15% for the year 2004-05 to the Government. This is in addition to the 15% interim dividend already paid, thus taking the total dividend payment for the year 2004-05 to 30%. During 2004-05, STC had earned a net profit before tax of Rs.37 crore, which was 43% higher over 2003-04. 

The second cheque presented today was on account of payment of interim dividend of 15% by STC for the year 2005-06. Dr. Pandalai informed that during first six months of the current financial year, the Corporation has reported a profit before tax of Rs.27 crore, which represents a growth of 11% over corresponding period of the previous year. The Corporation is confident of surpassing the full year turnover and profit targets contained in the MOU for the year 2005-06 and hence payment of 15% interim dividend is being made, he said. 

During 2005-06, STC has undertaken some important initiatives that would go a long way in sustaining higher turnover and profitability in the coming years. The Corporation has entered into overseas steel operations in Philippines under which it is arranging supply of coke/steel raw material to a steel plant that has been taken over by an Indian company in Philippines. The goods supplied are being procured from India as also from other countries. The Corporation gradually plans to undertake similar operations in other countries as well. 

An arrangement has also been reached with Mysore Minerals, a Government of Karnataka Undertaking, as per which STC has been getting assured supplies of iron ore fines and the same is being exported to China and other countries. STC has also been granted mining lease over a large piece of land in Karnataka for a period of 30 years. Other diversification plans in hand include export of petro-products, imports of communication equipments and non-ferrous metals and venturing into lightweight bullet-proof vests for military and paramilitary forces and ballistic protection for vehicles. 

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