Government Achieves Unprecedented Dividend of Rs 74,106 Crore from PSUs
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Synopsis
The Indian government has recorded a historic dividend of Rs 74,106 crore from its public sector enterprises for the fiscal year 2024-25, reflecting a significant increase from the previous year. This surpasses the revised budget estimate and highlights the government's efforts in fiscal management.
Key Takeaways
- Record dividend of Rs 74,106 crore received.
- 16 percent increase from previous fiscal year.
- Top contributors include Coal India Ltd and ONGC.
- New minimum dividend requirements set for PSUs.
- Future projections anticipate Rs 69,000 crore for 2025-26.
New Delhi, April 2 (NationPress) The government has achieved an unprecedented Rs 74,106 crore in dividends from Central public sector enterprises for the fiscal year 2024-25, marking a notable 16 percent increase from the previous year's figure of Rs 63,749.3 crore in 2023-24, as per the latest data from the Department of Investment and Public Asset Management.
The total dividends received by the Centre during the financial year ending March 31, 2025, have also surpassed the revised Budget estimate of Rs 55,000 crore.
The top contributors to this record were Coal India Ltd with Rs 10,252 crore, followed by the upstream giant Oil and Natural Gas Corp at Rs 10,002 crore, and the downstream oil marketing firm Bharat Petroleum Corp at Rs 3,562.47 crore.
Other notable contributors included Telecommunications Consultants (India) at Rs 3,761.50 crore and Hindustan Zinc Ltd at Rs 3,619.06 crore.
Each PSU is mandated to pay a minimum annual dividend of 30 percent of its profit after tax (PAT) or 4 percent of its net worth. For financial sector PSUs, such as non-banking financial companies, the minimum annual dividend is set at 30 percent of net profit.
Finance Minister Nirmala Sitharaman had previously announced the revised target of Rs 55,000 crore for dividend collections from Public Sector Undertakings (PSUs) for the fiscal year 2024-2025.
Looking ahead, the government anticipates an even higher dividend collection from public sector undertakings for the fiscal year 2025-26, with an estimated target of Rs 69,000 crore.
Additionally, the Centre projects to receive Rs 2.56 lakh crore from the Reserve Bank of India and public sector banks in the fiscal year 2025-26, as stated by Finance Minister Sitharaman in her Budget address on February 1.
The target dividend for 2025-26 exceeds the RBI’s contribution of Rs 2.1 lakh crore for 2024-2025, which was double the total dividend originally budgeted for that year. The RBI dividend is a crucial revenue source for the government, assisting in maintaining fiscal stability.
Currently, Central public sector enterprises are required to pay 4 percent of their net worth as dividends, down from the previous 5 percent. Meanwhile, the net worth criterion for public sector NBFCs has been removed, but the 30 percent of net profit requirement for minimum annual dividends remains intact.
