Redemption of preference shares issued by MDL rescheduled

New Delhi, June 16 (UNI) The cabinet committee on economic affairs (CCEA) today approved a proposal for rescheduling the dates for redemption of preference shares by Mazagon Dock Limited (MDL) from 1999-00 to 07-08.

It permitted MDL to pay arrears of dividend accumulated till 05-06 totalling Rs 47.08 crore in two equal instalments in 06-07 and 07-08 with interest of 0.5 per cent per annum from 06-07 onwards.

The CCEA also permitted yearly dividend on outstanding balance of preference shares from 06-07, said defence minister Pranab Mukherjee. Delayed payment of annual dividend will attract one per cent interest per year.

Mr Mukherjee said the CCEA also granted extension of time to MDL to redeem outstanding preference shares of Rs 98.98 crore in four equal annual instalments from 07-08. Any delay will call for penalty of 1.5 per cent interest per year.

The entire outstanding preference shares of Rs 98.98 crore will be redeemed, facilitating recovery of all outstanding loans of government which were converted into preference shares in 1999.

Payment of yearly dividend on outstanding balance of preference shares will start from 06-07, said the minister.

UNI SU CS KP1445