FinMin seeks good amount of dividend from PSUs

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FinMin seeks good amount of dividend from PSUs
The Finance Minister said today that it expects good amount of dividend from Public sector units (PSUs) this financial year.

R Gopalan and his officials are meeting heads of PSUs to influence on the increase dividend payment to the cash strapped government. Meeting was attended by heads in sector like steel, coal, mines, power and oil. However, they failed get the confidence for the larger dividends.

Economic Affairs Secretary R Gopalan said "The meetings (with PSUs) are going good. I hope we will be getting some good amount (of dividend). Effort is on"

"We are conscious of the fact that they also need resources for their own financing programme. They also understand our need. So in the spirit of cooperation we are trying to see how our needs can be met consistent with our requirement," Gopalan said.

The issue has already been raised to PSUs like SAIL, NALCO, PFC, REC, ONGC, IOC and Oil India among others.

Government is looking for more funds from PSUs to overcome the rising subsidy bill and slow advances on the disinvestment front.

In the current fiscal year subsidy bill is expected to grow by Rs one lakh crore, the government will face the difficulty to meet the disinvestment target of Rs 40,000 crore.

According to norms, profit making PSUs are required to declare a minimum of 20% dividend on equity investment or a minimum post-tax profit of 20%, whichever is higher.

Read more about: psu, finance minister, dividend, economy
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