Government’s dividend collection from CPSEs hits record Rs 61,149 crore

New Delhi: The government‘s dividend mopup from non-financial central public sector enterprises (CPSEs) and entities in which it holds minority stakes has touched a record ₹61,149 crore, 22% higher than the revised estimate for 2023-24, with almost a fortnight to go this fiscal, according to the latest finance ministry data.

Dividend receipts in the first half of March alone totalled nearly ₹10,000 crore. The revised estimate in the interim budget last month estimated the dividend collection for 2023-24 at ₹50,000 crore, higher than initial target of ₹43,000 crore.

“The dividend collection has surpassed all expectations this fiscal. CPSEs across sectors have been performing well, and the strong dividend flow is the clearest sign of that,” said an official, who did not wish to be identified. “Also, global crude oil prices didn’t quite surge as was feared after the Israel-Hamas war in October last year. So, the profitability of oil companies didn’t quite take a beating, which augurs well for dividend flow. Power sector companies, too, have been doing well.”

Higher dividend would offset any potential shortfall in the government’s miscellaneous receipts, which include disinvestment and monetisation, from the revised estimate of Rs 30,000 crore for this fiscal.

This month, the government has received dividends of Rs 2,149 crore from Power Grid Corporation of India, Rs 2,043 crore from Coal India, Rs 1,115 crore from NTPC, Rs 1,054 crore from Hindustan Aeronautics, Rs 1,024 crore from NMDC, Rs 948 from NHPC, Rs 647 crore from Power Finance Corporation, Rs 188 crore from National Aluminium Company and Rs 67 crore from Cochin Shipyard, according to the official data.

The total receipts by the Department of Investment and Public Asset Management (DIPAM), which comprise disinvestment and dividend collection, have touched Rs 75,886 crore. The disinvestment revenue so far this fiscal stands at Rs 14,737 crore.

The DIPAM’s dividend receipts had hit a record Rs 59,533 crore last fiscal, driven significantly by the payment of about Rs 9,000 crore by Hindustan Zinc Ltd (HZL) for the government’s 29.54% holding in the miner.

The CPSE dividend flow has been fairly broad-based this fiscal, even though HZL’s payout hasn’t been as generous, said officials.

The DIPAM had issued an advisory on a consistent dividend policy in 2020, which has also served to nudge CPSEs not to hold back on such payouts for no reason.