The amount is towards redemption of preferential capital and dividend

Union Minister for Steel Beni Prasad Verma on Tuesday presented a cheque for Rs.1,556.47 crore on behalf of the Rashtriya Ispat Nigam Limited to Prime Minister Manmohan Singh towards redemption of preferential capital and dividend.

The amount consisted a dividend of Rs.271.47 crore and Rs.1285 crore towards redemption of preferential capital.

The RINL, a Navratna company, is the corporate entity of Visakhapatnam Steel Plant.

The VSP is in advanced stage of completing its capacity enhancement from 3.2 million tonne to 6.3 million tonne per annum. The presentation of the cheque will increase the net worth of the company.

At the cheque presentation ceremony in New Delhi, Secretary, Ministry of Steel D.R.S. Chaudhary, Additional Secretary and Financial Advisor Machendranathan, RINL Chairman-cum-Managing Director A.P. Choudhary and Director (Finance) P. Madhusudan were present.

The Steel Minister lauded the RINL's performance for achieving best-ever turnover of Rs.14,457 crore, a significant 26 per cent improvement over the last financial year. The company also registered a growth of 6.5 per cent in sales volume of 3.5 million tonnes during 2011-12.

The RINL's likely net worth on March 31, 2012 would be Rs.13,800 crore, according to a release.

The Visakhapatnam-based public sector company achieved a capacity utilisation of 113 per cent during the financial year producing 3.5-million-tonne production of iron and steel. The organisation now plans to enter the next phase of expansion to 11-12 million tonnes per annum, which is under consideration of its board.