Home/ Companies / News/  Govt gets 5,001 cr dividend from ONGC; dividend from CPSEs reach 23,797 cr

The 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.

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Updated: 28 Nov 2022, 07:10 PM IST
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