VSNL, Powergrid present dividend cheques

By Our Special Correspondent

NEW DELHI, MAY 24. Videsh Sanchar Nigam (VSNL) today presented a lower interim dividend of Rs. 30.19 crores for 1999-2000 to the Central Exchequer. A cheque symbolising the dividend amount was presented by the VSNL CMD, Mr. S. K. Gupta, to the Communications Minister, Mr. Ram Vilas Paswan. The interim dividend is equal to 60 per cent of the total share capital as against the annual dividend of Rs. 41.06 crores last year.

The lower dividend is due to imprudent investments by VSNL in some cutting edge projects which in the end offered only employment opportunities in western countries for those close to the seat of power and countless overseas trips for the top brass in VSNL and the Communications Ministry. The company wrote off a massive Rs. 512 crores invested in the bankrupt satellite project ICO Global Holdings resulting in lower net profit of Rs. 799 crores.

Meanwhile, Powergrid Corporation presented a cheque of Rs. 20 crores to the Central Government as dividend for the last fiscal. The company earned a net profit of Rs. 610 crores in 1999-2000, registering an increase of 37 per cent over the previous fiscal. The turnover stood at Rs. 2,200 crores last year against Rs. 1,770 crores in the previous year.

Send this article to Friends by E-Mail

Section  : Business
Previous : Indal posts 10 p.c. rise in PAT
Next     : ITC's net profit up at Rs. 792 crores, pays 75
           p.c.