Government's CPSE Dividend Collection Rises To Record High Of Rs 61,149 Crore

The Centre government on Monday has posted record-high earnings from dividends paid by non-financial central public sector enterprises (CPSEs) and entities in which it holds minority stakes.

According to data from the finance ministry, as reported by the Economic Times (ET), the government's dividend collection has reached an unprecedented Rs 61,149 crore. This figure marks a remarkable 22 per cent increase over the revised estimate for the financial year 2023-24, with nearly two weeks remaining in the current financial year.

The Department of Investment and Public Asset Management (Dipam) has disclosed total receipts of Rs 75,886 crore, comprising both disinvestment proceeds and dividend collections. Notably, disinvestment revenue for the financial year currently stands at Rs 14,737 crore.

The 2023-24 Interim Budget initially projected dividend collections of Rs 50,000 crore, a target that has been surpassed with the latest figures. The surge in dividend receipts has been particularly evident during the first half of March, with collections amounting to nearly Rs 10,000 crore alone. Additionally, the revised estimate for miscellaneous receipts for the current financial year stands at Rs 30,000 crore.

An official, speaking to ET, attributed this exceptional performance to the robust financial performance of CPSEs across various sectors. Despite concerns over potential disruptions caused by global events such as the Israel-Hamas conflict, companies in the oil sector have managed to maintain profitability, thereby contributing significantly to the buoyancy in dividend receipts. Furthermore, the power sector has demonstrated resilience and has been a key contributor to the positive dividend flow.

The government was paid significant dividends this month by a number of CPSEs, including Power Grid Corporation of India (Rs 2,149 crore), Coal India (Rs 2,043 crore), NTPC (Rs 1,115 crore), Hindustan Aeronautics (Rs 1,054 crore), NMDC (Rs 1,024 crore), NHPC (Rs 948 crore), Power Finance Corporation (Rs 647 crore), National Aluminium Company (Rs 188 crore), and Cochin Shipyard (Rs 67 crore).

The dividend flow from CPSEs has been broad-based throughout this financial year, despite a relatively lower payout from Hindustan Zinc Ltd (HZL). In 2020, Dipam released a recommendation on consistent dividend policy, which encouraged CPSEs to continue paying dividends on a regular basis. Additionally, ministries have actively promoted diversification within CPSEs to enhance their financial performance and contribute to government revenues.

It is noteworthy that in the previous financial year, Dipam's dividend receipts amounted to a record Rs 59,533 crore, with Hindustan Zinc Ltd (HZL) making a significant contribution through a payment of approximately Rs 9,000 crore for the government's 29.54 per cent stake in the company.

This surge in dividend collections reflects the resilience and financial strength of India's public sector enterprises, highlighting their crucial role in contributing to government revenues and economic stability.