Government CPSE dividend collection hits record high of Rs 61,149 crore

The government's earnings from dividends paid by non-financial central public sector enterprises (CPSEs) and entities in which it holds minority stakes have reached an all-time high of Rs 61,149 crore, according to a report by the Economic Times (ET), based on finance ministry data. This figure represents a remarkable 22 per cent increase over the revised estimate for the financial year 2023-24, with almost two weeks remaining in the current financial year.

The Department of Investment and Public Asset Management (Dipam) has recorded total receipts of Rs 75,886 crore, comprising both disinvestment proceeds and dividend collections.

The 2023-24 Interim Budget projected dividend collections of Rs 50,000 crore, which surpassed the initial target 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 financial year also stands at Rs 30,000 crore.

Speaking to ET, an official attributed this performance to the strong financial performance of CPSEs across various sectors. Despite concerns over potential disruptions caused by global events such as the Israel-Hamas conflict, oil companies managed to maintain profitability, thereby contributing to the buoyancy in dividend receipts. Additionally, the power sector has shown resilience and contributed to the positive dividend flow.

This month, the government received dividend payments 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 crore from NHPC, Rs 647 crore from Power Finance Corporation, Rs 188 crore from National Aluminium Company, and Rs 67 crore from Cochin Shipyard.

Dividend flow from CPSEs has been broad-based this financial year despite a relatively lower payout from HZL. A consistent dividend policy advisory issued by Dipam in 2020 has encouraged CPSEs to maintain regular dividend payments. Ministries have also encouraged diversification within CPSEs.

Last financial year, Dipam's dividend receipts amounted to a record Rs 59,533 crore, with Hindustan Zinc Ltd (HZL) contributing significantly to this figure through a payment of approximately Rs 9,000 crore for the government's 29.54 per cent stake in the company.