Govt gets ₹5,001 cr dividend from ONGC; dividend from CPSEs reach ₹23,797 cr
1 min read 28 Nov 2022, 07:10 PM ISTThe DIPAM, in 2020, advised CPSEs to follow a consistent dividend policy and strive to pay higher dividends taking into account factors like profitability, capex requirements, cash/reserve
PremiumThe central government has received around ₹5,001 crore as dividend tranche from ONGC taking the total dividend receipt from Central Public Sector Enterprises to ₹23,797 crore till date so far this fiscal.
"The government has received about ₹5,001 crore from ONGC as dividend tranche," Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey tweeted.
The DIPAM, in 2020, advised CPSEs to follow a consistent dividend policy and strive to pay higher dividends taking into account factors like profitability, capex requirements, cash/reserve and net worth.
As per guidelines, CPSEs are required to pay a minimum annual dividend of 30 per cent of profit after tax (PAT) or 5 per cent of net worth, whichever is higher.
The total dividend receipts so far this fiscal stood at ₹23,796.55 crore, as per DIPAM website.
The government has received ₹1939 crore as dividend from state-owned IOCL and ₹67 crore from CONCOR as dividend tranches.
The government has received ₹952 crore as dividend from three public sector companies namely IRFC, NALCO, and CONCOR.
The revised Budget estimate for dividends from CPSEs was lowered to ₹46,000 crore from ₹50027 crore estimated in the Budget earlier.In 2021-22, the Budget had pegged receipts from dividends of CPSEs at ₹50,027 crore.
The government had in 2016 revised the dividend distribution policy of Public Sector Undertaking (PSU) entities by asking them to pay 30% of post-tax profit or 5% of net worth, whichever is higher, as dividend every year. A week ago, the government received ₹914 crore from state-owned GAIL (India) . Ltd as a dividend tranche.
