Press Information Bureau

Government of India

Ministry of Finance

26-March-2012 18:06 IST

SPMCIL Inks MoU with the Government setting Sales Target of Rs.3050 Crores for the Financial Year 2012-13

Security Printing and Minting Corporation of India Limited (SPMCIL) has signed a Memorandum of Understanding (MoU) with the Department of EconomicAffairs (DEA), Ministry of Finance, Govt. of India, setting the sales target of Rs.3050 crores for the fiscal2012-13. The MoU was exchanged between Secretary, DEA, Shri R. Gopalan and CMD, SPMCIL,Shri M.S. Rana. Shri Bimal Julka, Director General, Directorate of Currency and Shri H. Pradeep Rao, Joint Secretary & Financial Advisor from Ministry of Finance were present on this occasion.Shri Ashwini Kumar, Director (Technical) and Dr. Manoranjan Dash, Director (HR) from SPMCILwere also present.

The MoU has been signed based on the targets and the parameters negotiated by a Department of Public Enterprises (DPE) appointed Task Force (TF). The MOU is based on the premise of a growth charter in a globally competitive environment and forward looking approach of SPMCIL and incorporates new parameters and weightages for evaluation of performance with focus on profitability, new schemes, market & product diversification as well as optimization of its various resources. DPE has prescribed new parameters in the areas of Research and Development, Sustainable Development, Corporate Social Responsibility, Corporate Governance and Human Resources Management which have been duly incorporated in MoU for 2012-13. The MoU also contains commitments in the areas of customer satisfaction, adoption of innovative practices, project implementation, participation in international tenders, Environment safety etc.

SPMCIL is a Miniratna Category-I CPSE, wholly owned Schedule ‘A’ Company of Govt. of India. It is engaged in the minting of coins, printing of currency notes, passport and allied travel documents, postal stationery, non-judicial stamp papers, etc. The Company was incorporated in the year 2006 and within 6 years of its life the Company has achieved many milestones in terms of production, profitability and growth. The Company has achieved ever highest production of coins and banknotes of 6 and 7 billion pieces respectively and highest gross income of Rs. 3416 crores and highest profit of Rs.577 crores in FY 2010-11 despite constant selling prices of coins and banknotes since 2007-08. The Company has accumulated the reserves of Rs. 1923 croes as on 31.03.2011 after paying maiden dividend to the Government for Rs. 115.45 crores, which is equivalent to 20% of its post tax profits for FY 2010-11. The Company is having five year Capex Plan of Rs. 2500 crores from 2009-10 to 2014-15. The Company has taken-up R&D projects in the fields of security paper, security printing and coin metallurgy. SPMCIL is also providing 12 school buildings in rural areas of West Bengal and Maharashtra for imparting education to under privileged children with special focus on girl child education (52% girls and 86% minorities). Other innovative CSR projects in the areas of health & family welfare, environment and social development have also been taken-up by the Company. The Company has achieved excellent rating for performance of MoU for the year 2009-10 & 2010-11.

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DSM/SS/Hb

Sales target in MoU frames public enterprise performance metrics, adding R&D, CSR, governance and market diversification obligations. A Memorandum of Understanding between the Government and SPMCIL sets a sales target and incorporates DPE-recommended performance parameters emphasizing profitability, market and product diversification, resource optimization, and project implementation. The MoU adds new evaluation criteria for Research and Development, Sustainable Development, Corporate Social Responsibility, Corporate Governance and Human Resources Management, and records commitments on customer satisfaction, innovative practices, international tender participation, and environment and safety standards, aligning the Miniratna company's operational, R&D and CSR activities with its annual performance framework.