Press Information Bureau

Government of India

Ministry of Finance

26-March-2012 18:04 IST

SPMCIL becomes a debt-free company

Security Printing and Minting Corporation of India Limited (SPMCIL) has repaid the whole amount of loan to the Central Government in four yearly equal installments starting from the year 2008-09 and the last installment of Rs. 175 crores was paid by CMD, SPMCIL, Shri M.S. Rana to Additional Secretary (Budget), Shri Shaktikanta Das on 23.03.2012 thus making SPMCIL a debt-free Company. On that occasion, Shri Bimal Julka, Director General, Directorate of Currency and Shri H. Pradeep Rao, Joint Secretary and Financial Advisor, Ministry of Finance and Shri Ashwini Kumar, Director (Techincal) and Dr. Manoranjan Dash, Director (HR) of SPMCIL were also present.

Security Printing and Minting Corporation of India Limited (SPMCIL), a Miniratna Category-I CPSE, is a wholly owned Schedule ‘A’ Company of Govt. of India. The Company was incorporated on 13.01.2006 and all nine units of Govt. of India engaged in minting of coins and printing of banknotes, passport, postal stationery, non-judicial stamp papers and other security documents and security paper were transferred to the Company on 10.02.2006. The Government of India has given an interest free working capital loan of Rs. 700 crores to SPMCIL in 2007-08.

SPMCIL has registered growth in terms of production and profitability since its incorporation. The Company has achieved ever highest production of coins of 6 billion pieces and banknotes of 7billion pieces respectively. The net profit of the Company was Rs. 577 crores in FY 2010-11 and SPMCIL has paid a maiden dividend of Rs. 115.45 crores to Government of India, which is 20% ofits post tax profit for that year. As on 31.03.2011, the reserves of the Company stood at Rs. 1923crores. SPMCIL has the Capital Expenditure Plan of Rs. 2500 crores to be spent in five years starting from 2009-10. Since incorporation, the employee strength of the Company has been reduced to half and production has been doubled. SPMCIL has proved to be the best example of corporatisation of Government departments/units.

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DSM/SS/Hb

Debt-free status achieved by corporate repayment of government working capital loan, reflecting successful public sector corporatisation. SPMCIL achieved debt-free status by repaying in four equal annual installments the interest-free working capital loan of Rs. 700 crores provided by the Government of India, with the final installment paid on 23 March 2012, thereby extinguishing that government loan liability.