Centre eyes16 PSUs for more tax mop-up

Firms told to pay higher dividends.

The Centre is hoping to garner an additional Rs 7,000 crore to Rs 10,000 crore through special and interim dividends from 16 public sector companies, including GAIL (India) Ltd, Bharat Heavy Electricals Ltd, NTPC Ltd, Steel Authority of India Ltd and Mahanagar Telephone Nigam Ltd.

The estimate was drawn up after Expenditure Secretary Adarsh Kishore's consultation with the brass of these PSUs on Friday and today.

The companies have been asked to submit their projections on profits this year, accretion to reserves and their capital expenditure plans for the next fiscal.

"Now, they will have to go to their respective boards for approvals," said a finance ministry official

A higher dividend payment by these PSUs will significantly increase the Centre's receipts, which are budgeted at Rs 16,091 crore for the current financial year.

The other PSUs that have been asked to cough up higher dividends include Nalco, Bharat Sanchar Nigam Ltd, Coal India, Neyveli Lignite, National Mineral Development Corporation, Coal India Ltd, Power Finance Corporation, Rural Electrification Corporation, Shipping Corporation, Nuclear Power Corporation and Hindustan Aeronautics Ltd.

The government is of the opinion that these PSUs are doing well and will post at least the last year's level of profits, if not higher. At the same time, it wants them to use idle cash to meet their higher expenditure needs in the wake of large spending on social sector schemes.

But the finance ministry is not taking any chances with revenue collection that has been sluggish on direct tax and excise duty.

The ministry is working on ways to improve non-tax revenue receipts during the current fiscal year to ensure that it does not fall short of the targeted fiscal deficit of 4.3 per cent of the GDP.

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CASH RICH

GAIL, BHEL, NTPC, SAIL, MTNL, BSNL, Nalco and Cola India in the list

The companies have been asked to submit projections on profits this year, accretion to reserves and their capital expenditure plans for the next fiscal.

A higher dividend payment by these PSUs will significantly increase the Centre's receipts