In a move that will fetch the government exchequer Rs 16,485.71 crore, the Coal India Ltd (CIL) board on Tuesday approved a special dividend for this financial year.
The board cleared a dividend of Rs 29 for every share of Rs 10 face value, the highest so far. It will be disbursed from January 25 to those holding CIL shares as on January 20.
“The total outgo for the company would be Rs 18,317.46 crore (believed to be the biggest ever dividend payout by an Indian firm in terms of size); of this, the Government of India, which holds 90 per cent of the company’s shares, will get Rs 16,485.71 crore,” said CIL Chairman & Managing Director S Narsing Rao.
Besides, the government will get an additional Rs 3,113.05 crore as dividend distribution tax from CIL and its subsidiaries. The firm had paid the government Rs 8,842.91 as dividend for 2012-13.
Many of the government’s stake-sale plans, including one for CIL, have hit roadblocks in recent times and the government is struggling to meet its Rs 40,000-crore disinvestment target for 2013-14. At such a time, the boost from CIL dividend is going to help it bridge the revenue shortfall.
On Tuesday, the Street was abuzz with speculation the government might ask cash-rich state-run companies to announce hefty interim dividends to enable it to meet its fiscal deficit target for the financial year. The CIL shares fell 0.12 per cent on BSE to close at Rs 289.9 apiece.
The board cleared a dividend of Rs 29 for every share of Rs 10 face value, the highest so far. It will be disbursed from January 25 to those holding CIL shares as on January 20.
“The total outgo for the company would be Rs 18,317.46 crore (believed to be the biggest ever dividend payout by an Indian firm in terms of size); of this, the Government of India, which holds 90 per cent of the company’s shares, will get Rs 16,485.71 crore,” said CIL Chairman & Managing Director S Narsing Rao.
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Besides, the government will get an additional Rs 3,113.05 crore as dividend distribution tax from CIL and its subsidiaries. The firm had paid the government Rs 8,842.91 as dividend for 2012-13.
Many of the government’s stake-sale plans, including one for CIL, have hit roadblocks in recent times and the government is struggling to meet its Rs 40,000-crore disinvestment target for 2013-14. At such a time, the boost from CIL dividend is going to help it bridge the revenue shortfall.
On Tuesday, the Street was abuzz with speculation the government might ask cash-rich state-run companies to announce hefty interim dividends to enable it to meet its fiscal deficit target for the financial year. The CIL shares fell 0.12 per cent on BSE to close at Rs 289.9 apiece.