Centre gets a dividend boost as receipts from state-run undertakings surpass revised estimates by 26% to Rs 63,000 cr

2024-03-31 05:15:12

The Centre’s kitty got a boost as dividend receipts from state-run undertakings exceeded the revised budget estimate by 26 per cent to regarding Rs 63,000 crore. Finance Minister Nirmala Sitharaman had revised dividend receipts in the Interim Budget to Rs 50,000 crore for the current fiscal.

Among the PSUs, Coal India, ONGC, Powergrid and GAIL were the top dividend payers to the government. In March, the government received hefty dividend tranches from ONGC (Rs 2,964 crore), Coal India (Rs 2,043 crore), Power Grid Corporation of India (Rs 2,149 crore), NMDC (Rs 1,024 crore), HAL (Rs 1,054 crore) and GAIL (Rs 1,863 crore).

In the last fiscal (2022-23), dividend receipts stood at Rs 59,952.84 crore.

Higher dividend is a reflection of the robust financial performance of CPSEs during the 2023-24 fiscal. The payouts by CPSEs also benefit retail and institutional shareholders and will help generate interest in PSU shares.

As per DIPAM’s capital restructuring guidelines, CPSEs which do not have plans to deploy their capital optimally for business purposes should have a professional look at the surplus funds available to them.

The CPSEs sitting on cash piles are required to pay dividends, which will, in turn, help keep investors interested in the stock. The combined market capitalisation of CPSEs, banks and insurance companies has grown 500 per cent in the past three years from Rs 15 lakh crore to Rs 58 lakh crore. Also, the government’s equity holding has risen 4 times to Rs 38 lakh crore from Rs 9.5 lakh crore in January 2021.

(With inputs from agencies)

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