Govt. receives Rs 61,308 crore as dividend from non-financial CPSEs

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The government mopped up a record Rs 61,308 crores as dividend earnings from its non-minority stake holdings in non-financial central public sector enterprises (CPSEs). Notably, this is a staggering 22% higher than the revised estimate for FY2023-24, which stood at Rs 50,000 crores. This had also been raised from the original Rs 43,000 crores. 

Power Grid Corporation led the dividend rally, paying around Rs 2,149 crores to the government as dividends. It was closely followed by Coal India (Rs 2,043 crores), NTPC Ltd. (Rs 1,115 crores), Hindustan Aeronautics (Rs 1,054 crores) and NMDC (Rs 1,024 crores).

Other CPSEs which made it to the list include NHPC (Rs 948 crores), Power Finance Corporation (Rs 647 crores) and Cochin Shipyard (Rs 67 crores). In all, there are around 60 non-financial CPSEs, where the total  market capitalization value of government’s shares stood at Rs 2,023,647.71 crores.

As per data from Department from Investment and Public Asset Management (DIPAM), its total receipts for FY 2023-24 stood at Rs.76,046.09 crores. Out of this, disinvestment receipts accounted for Rs 14,737.29 crores, while dividend receipts amounted to Rs 61,308.80 crores. In fact, dividend received within the first 15 days of March amounted to Rs 10,000 crores.

As per the officials, oil and power sector companies have been instrumental in strengthening the dividend inflow. For instance, the market capitalization of GOIs shares in Power Grid Corporation, where the government holds 51.34% stake, stood at Rs 94,900 crores.

DIPAMs divided receipts had seen a record surge last year as well, lapping up around Rs 59,533 crores. This was majorly driven by Rs 9,000 crore dividend payment made by Hindustan Zinc Ltd (HZL), where the government holds a 29.54% stake. 

For FY2023-24, the government has made disinvestments worth Rs 14,737.29 crores, with major sell-offs in Rail Vikas Nigam Ltd (5.36%), Housing and Urban Development Corporation Limited (6.64%), Indian Renewable Energy Development Agency (IREDA) (10%), IRCON International (8%) and NLC India (7%).