Govt rakes in record ₹61,149 cr dividend from CPSEs

The government has garnered a record-high dividend of ₹61,149 crore from non-financial central public sector enterprises (CPSEs) and minority stakes in other entities, according to data from the finance ministry.

The Department of Investment and Public Asset Management (Dipam) has reported total receipts of ₹75,886 crore, which includes both disinvestment proceeds and dividend collections. Disinvestment revenue for the current financial year stands at ₹14,737 crore.

The projected dividend collections for the fiscal year 2023-24 in the Interim Budget was ₹50,000 crore, surpassing the initial target of ₹43,000 crore. Dividend receipts in March alone amounted to nearly ₹10,000 crore. The revised estimate for miscellaneous receipts for the current financial year is ₹30,000 crore.

Despite concerns about global events like the Israel-Hamas conflict, oil companies have remained profitable, contributing to the high dividend receipts. The power sector has also shown resilience and added to the positive dividend flow.

Notable dividend payments this month include ₹2,149 crore from Power Grid Corporation of India; ₹2,043 crore from Coal India; ₹1,115 crore from NTPC; ₹1,054 crore from Hindustan Aeronautics; ₹1,024 crore from NMDC; ₹948 crore from NHPC; ₹647 crore from Power Finance Corporation; ₹188 crore from National Aluminium Company; and ₹67 crore from Cochin Shipyard.

Despite a lower payout from Hindustan Zinc Ltd (HZL), dividend flow from CPSEs has been diverse and robust this financial year. A consistent dividend policy advisory from Dipam in 2020 has encouraged regular dividend payments from CPSEs, and ministries have promoted diversification within these enterprises.

In January of the current fiscal year, the Dipam amassed ₹53,895 crore through dividends and disinvestment receipts. Surpassing the targeted amount, dividend income reached ₹43,843 crore, while disinvestment revenue remained modest at ₹10,052 crore.

The government had initially aimed to receive a dividend of ₹48,000 crore from entities like the Reserve Bank of India (RBI), public sector banks, and financial institutions in the fiscal year 2023-24. However, this goal was significantly exceeded when the Reserve Bank transferred a surplus of ₹87,416 crore to the central government for the fiscal year 2022-23. In the previous fiscal year, the government raised ₹40,953 crore from central and public sector financial institutions.

Last financial year, Dipam received a record ₹59,533 crore in dividend receipts, with Hindustan Zinc Ltd (HZL) contributing significantly to this amount through a payment of around ₹9,000 crore for the government's 29.54% stake in the company.