The PSU conundrum

Demanding higher payouts will affect growth prospects

Along with higher dividend payment, public sector undertakings (PSUs) will now be mandatorily required to outline a plan for non-core asset monetisation. On the face of it, this might sound a reasonable ask as selling non-core assets would help generate cash, which can be shared with the government. And, dividend income is a significant component of non-tax revenue for the central government and, unlike tax revenue, it doesn't need to share it with states. Higher dividends from PSUs can be useful, particularly in a year like this, when the overall revenues are likely to fall short by a significant margin.

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