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Two firms to be set up for minting

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June 13, 2003 13:28 IST

The government is expected to set up two public sector companies for printing currency notes and coins as part of its strategy to corporatise the currency and coinage division of the finance ministry.

While one of them will be the holding company for the five bank note presses, the other will manage the four India Government Mint units.

According to the plan drawn up by the finance ministry, the Bank Note Press, Dewas (Madhya Pradesh), Security Printing Press, Hyderabad, Security Paper Mill, Hoshangabad (Madhya Pradesh) and Currency Note Press and India Security Press, both in Nasik, will be corporatised and put under one unit.

The four government mints at Hyderabad, Kolkata, Mumbai and Noida will be managed by the second company.

The Industrial Finance Corporation of India has been asked to draw the corporatisation roadmap, in consultation with the government.

The institution was expected to submit its report by the end of the year, senior government officials told Business Standard.

IFCI will also be responsible for hand-holding the companies for six months after the division is corporatised.

The officials added that the government would also undertake a valuation exercise of the nine units that were part of the currency and coinage division.

Utmost importance would be given retaining the security aspects of the process given the sovereign nature of business.

The ownership structure of the companies and the units is, however, yet to be finalised. The taxation issues will also have to be sorted out since the companies would come under the purview of the Income Tax Act once they are separated from the ministry.

Officials said some legal issues were also being looked into and the various regulatory approvals that would be required were being identified.

They said the process of corporatisation should be completed during the next financial year.

The move is expected to make each unit a profit centre. This will also ensure that the ministry will be spared the effort of micro-managing these units.

As a part of his plans to reduce the government's role and reduce the size of the finance ministry, the then Finance Minister, Yashwant Sinha, had announced the corporatisation of the currency and coinage division in the Budget for 2001-02.

His successor Jaswant Singh is carrying on with the process initiated by Sinha.

Making money

  • The Bank Note Press, Dewas (Madhya Pradesh), Security Printing Press, Hyderabad, Security Paper Mill, Hoshangabad (Madhya Pradesh) and Currency Note Press and India Security Press, both in Nasik, will be corporatised and put under one unit.
  • The four government mints at Hyderabad, Kolkata, Mumbai and Noida will be managed by the second company.
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