PSUs may have to pay higher dividend to govt

GN Bureau | October 14, 2015


#PSU   #public sector   #ONGC   #Oil India and GAIL  

To meet the union budget estimates, all profit-making public-sector undertakings (PSU) have been asked to pay a minimum dividend of 30 per cent of post-tax profit for 2015-16. Earlier, only the upstream oil and gas PSUs were asked to pay 30 per cent dividend while minimum 20 per cent dividend was sought from other PSUs.

However, a final decision on how much dividend these companies pay would be taken by their respective boards.

The budgeted estimate for dividend from public-sector enterprises is Rs 36,174.14 crore - a 27.3 per cent jump from the revised estimates for 2014-15 PSU dividends of Rs 28,423.07 crore. This excludes state-owned banks and financial institutions.

The dividend target for the current year was set based on two points. One, de-control of diesel and petrol along with low commodity prices would lead to lower under-recovery burden for upstream oil and gas behemoths such as Oil and Natural Gas Corporation, Oil India, and GAIL. As a result, they would pay higher dividend than the past few years. Second, the budget planners anticipated asking other profitable PSUs for higher dividends as well.

Even if not all of these PSUs would be able to pay a 30 per cent dividend, the budget planners are confident that the steep jump notwithstanding, the FY16 dividend target will be met. For 2014-15, ONGC, Oil India and GAIL bore a combined under-recovery burden of close to Rs 43,000 crore, while for 2013-14, they bore around Rs 67,000 crore.

Comments

 

Other News

Fewer and fewer parliament sittings

The winter session of parliament this year is going to be from December 15 to January 5, which will result in fewer sittings and impact legislative productivity. When parliament meets for a fewer days, it is bound to have an adverse impact on the work. The parliamentarians do get to spend mo

Indians most affected by global internet policies: Aruna Sundararajan

 People in India are most affected by global internet policies, said secretary, department of telecommunications, Aruna Sundararajan. Flagging the challenges of national governance, Sundararajan said on social media India has the largest number of users.   

Three killed as train derails in UP

Three passengers were killed and around a dozen sustained grievous injuries after nine coaches of Vasco Da Gama-Patna express derailed near Manikpur railway station in Uttar Pradesh on Friday morning. Similarly, 14 wagons of a goods train also jumped off the track near Cuttack in Odisha. 

Should Patidars of Gujarat be given reservation?

Should Patidars of Gujarat be given reservation?

Job market is currently experiencing structural change: Nathan

SV Nathan, partner and chief talent officer, Deloitte India spoke to Praggya Guptaa about the current job market situation and the upcoming opportunities in India. How would you assess the job market situation in India? If you look at the economy today

Are we seriously fighting malnutrition?

It did not surprise me when the India: health of the nation’s states, the India state-level disease burden initiative report released recently reported malnutrition the prime risk factor driving the most deaths and disability in Madhya Pradesh. Even in 1990 malnutrition was the frontrunner and after



Video

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter