New Delhi, Dec 31 (NationPress) The government has witnessed a remarkable increase in dividend payouts from Central Public Sector Enterprises (CPSEs), soaring by 86.2% from Rs 39,750 crore in 2020–21 to Rs 74,017 crore in 2024-25. This significant rise is attributed to the Centre's adept capital management strategies, improved accountability frameworks, and effective scheduling of disinvestment activities, as stated by the Finance Ministry on Wednesday.

In 2025, the Department of Investment and Public Asset Management (DIPAM) continued its crucial role in bolstering public finances, creating value within CPSEs, and advancing market-oriented reforms through strategic capital management, disinvestment, and targeted capacity-building initiatives.

Despite a gradual reduction in government ownership of CPSEs through disinvestment, dividend payouts have shown a consistent upward trend since FY 2020-21.

Dividends from CPSEs represent a significant component of non-tax revenue. The process for determining dividend payouts is conducted through a structured inter-Ministerial body known as the Committee for Monitoring of Capital Management and Dividends by CPSEs. Over the past five years, there has been a notable enhancement in dividend distributions from CPSEs.

Overall dividend collections from CPSEs have demonstrated a steady increase over the last five financial years, surpassing the corresponding Revised Estimates (RE) each year.

DIPAM has also utilized the Offer for Sale (OFS) mechanism to enhance the value of CPSEs. A disinvestment of 3.61% of the paid-up equity in Mazagon Dock Shipbuilders Limited from the government's 84.83% shareholding was initiated on April 4, 2025, for the non-retail segment, and on April 7, 2025, for retail investors.

The transaction was oversubscribed, leading to the exercise of a green shoe option in the non-retail category. The government successfully raised Rs 3,673.42 crore from this operation. Following the OFS, the market price of the stocks has generally trended upwards, benefiting investors with capital gains.

As part of its broader Value Creation in CPSEs initiative, DIPAM has been proactive in enhancing leadership and communication skills within CPSEs. In partnership with the Capacity Building Commission (CBC), DIPAM organized a workshop in January 2025 focused on enhancing leadership communication capabilities for CPSE executives involved with finance, business strategy, and investor relations.

The Department has also successfully facilitated a Capacity Building Programme on the fundamentals of financial markets conducted by the NSE for its officers and staff throughout the year.

The Finance Ministry concluded that through continuous improvements in dividend performance, successful market-driven disinvestment, and targeted capacity-building efforts, DIPAM’s initiatives in 2025 have strengthened fiscal health, boosted investor trust, and fostered long-term value creation in CPSEs.