Gail pays final dividend for 2005-06

Gas utility Gail India Ltd on Thursday handed over a cheque of Rs 96.98 crore to the government towards payment of final dividend for the financial year 2005-06.

New Delhi, Sept 01: Gas utility Gail India Ltd on Thursday
handed over a cheque of Rs 96.98 crore to the government
towards payment of final dividend for the financial year
2005-06.

The cheque was given by Gail Chairman and Managing
Director S P Rao to Petroleum Secretary M S Srinivasan.

With this payment, Gail has contributed to the state
exchequer an aggregate sum of Rs 484 crore towards dividend
for the financial year 2005-06.

The shareholders of the company at their 22nd annual
general meeting held on August 14, here had approved payment
of dividend at 100 per cent, including an interim dividend
payment of 60 per cent and special interim divided of 40 per
cent already declared and paid in the months of January and
February respectively.

The dividend payment during the financial year 2005-06
represents a pay-out ratio of 42 per cent.

So far, Gail has disbursed dividend of Rs 4,540 crore to
the shareholders including the government of India, which is
more than five times the original investment of Rs 845 crore
by the government in the equity capital of Gail.

The government has been disinvesting its shareholding in
Gail from time to time, bringing down its equity holding to
57.34 per cent and thereby contributing to the exchequer an
additional amount of Rs 3,400 crore.

Bureau Report

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