Center has received a dividend of about Rs 63,000 crore from public sector undertakings in the current financial year 2023-24. This is 26 percent more than the revised budget estimate. Total receipts have increased due to good dividends from central undertakings like Coal India, ONGC, Power Grid and GAIL. In the budget presented on February 1, a revised estimate of dividend receipt of Rs 50,000 crore from central undertakings for 2023-24 was kept. According to data available on the website of the Department of Investment and Public Asset Management (DIPAM), actual dividend receipts increased by about 26 percent to Rs 62,929.27 crore in the financial year ending March 31, 2024.
How much money did you get from which companies?
In March, the government received funds 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). Good dividend installments were received from it. Dividend receipt in the last financial year (2022-23) was Rs 59,952.84 crore. The higher dividend reflects the strong financial performance of central undertakings during the financial year 2023-24.
Government’s equity stake is Rs 38 lakh crore
Retail and institutional shareholders have also benefited from PSU payouts. This is expected to increase the interest of investors in the shares of public companies. As per DIPAM’s capital restructuring guidelines, Central Undertakings which do not have a plan to optimize their capital for business purposes should take a professional look at the available surplus funds. PSUs holding excess cash are required to pay dividends. This will be helpful for investors to maintain interest in the shares of the respective companies. The combined market capitalization of central undertakings, banks and insurance companies has increased by 500 percent in the last three years to Rs 58 lakh crore. Also, the equity stake of the government has increased four times from Rs 9.5 lakh crore to Rs 38 lakh crore in January 2021.
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