The government's revenues from dividends paid by non-financial central public sector enterprises (CPSEs) and firms in which it has a minority ownership have reached an all-time high of Rs 61,149 crore, according to a credible report based on finance ministry statistics. This amount reflects a remarkable 22% rise over the revised estimate for fiscal year 2023-24, with nearly two weeks left in the current fiscal year.
The Department of Investment and Public Asset Management (Dipam) reported total receipts of Rs 75,886 crore, which included both disinvestment proceeds and dividend collections. Disinvestment revenue for the fiscal year is at Rs 14,737 crore.
The 2023-24 Interim Budget expected dividend collections of Rs 50,000 crore, exceeding the earlier projection of Rs 43,000 crore. During the first half of March alone, dividend receipts amounted to nearly Rs 10,000 crore. The revised estimate for miscellaneous receipts for the current fiscal year is Rs 30,000 crore.
Speaking with ET, an official attributed this success to the outstanding financial performance of CPSEs in several industries. Despite concerns about potential disruptions from global events like the Israel-Hamas conflict, oil businesses maintained profitability, contributing to the increase in dividend receipts. Furthermore, the electricity industry has demonstrated resiliency, contributing to the favorable dividend flow.
This month, the government received dividend payments totaling 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 crore from NHPC, Rs 647 crore from Power Finance Corporation, Rs 188 crore from National Aluminium Company, and Rs 67 crore from Cochin Shipyard.
Despite HZL's relatively low payout, CPSE dividends have been broadly distributed this fiscal year. Dipam issued a consistent dividend policy guideline in 2020, encouraging CPSEs to continue paying monthly dividends. Ministries have also promoted diversification within CPSEs.
Dipam's dividend receipts reached a record Rs 59,533 crore last fiscal year, with Hindustan Zinc Ltd (HZL) contributing considerably to this total by paying almost Rs 9,000 crore for the government's 29.54 percent ownership in the business.
