Govt gets Rs 6,651 cr interim dividend from 12 PSUs, Power Grid tops table

Centre's dividend target for FY22 is Rs 50,028 crore; so far it has received Rs 46,587 crore as dividend including these recent transfers

The Centre has received Rs 6,651 crore as interim dividend from 12 public sector undertakings (PSUs) on Monday, edging towards its Rs 50,028 crore dividend target for the ongoing fiscal.

Power Grid Corporation of India (PGCIL) has transferred Rs 2,506 crore as a dividend tranche to the government, while NMDC and Nuclear Power Corporation of India transferred interim dividends of Rs 1,605 crore and Rs 972 crore, respectively.

The government has received dividend tranches of Rs 913 crore from GAIL, Rs 351 crore from Hindustan Aeronautics, Rs 149 crore from Bharat Electronics, among others, Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey tweeted. Central Warehousing Corporation, National Highways Infrastructure Development Corporation (NHIDCL) and WAPCOS have paid Rs 42 crore, Rs 26 crore and Rs 25 crore, respectively. Government has received about Rs 19 crore, Rs 12 crore and Rs 31 crore from HLL Lifecare, FCI Aravali Gypsum and Minerals India and National Small Industries Corporation (NSIC), respectively.

In the current financial year, the Centre has received Rs 46,587 crore as dividend including these recent transfers. The government has budgeted Rs 50,028 crore as ‘dividend from public sector enterprises and other investments’ in the ongoing financial year.

PSUs are required to pay a minimum annual dividend of 30 per cent of their profits or 5 per cent of their net worth, whichever is higher. In the last financial year, the Centre had announced a consistent dividend policy for PSUs that requires them to pay interim dividend every quarter or on a half yearly basis. The high dividend paying PSUs have to transfer dividends every quarter after declaring their quarterly earnings while others can transfer the dividend twice a year. About 90 per cent of the projected annual dividend has to be paid by PSUs as interim dividend in one or more tranches.