The Centre’s dividend receipts from the Central Public Sector Enterprises (CPSEs) and other investments have fetched Rs 29,390 crore so far in the current financial year or 52% of the annual target.
Despite conflicts in Ukraine and the Middle East, global crude prices have largely remained in the comfortable range for India at around $70/barrel in most part so far in FY25.
With lower crude prices aiding bottom lines, state-run oil and gas companies are the top dividend payers with Rs 9,590 crore, followed by mining (Rs 6,000 crore), communications and power.
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Indian Oil has paid Rs 5,091 crore, followed by Hindustan Zinc (in which the government owns a 29.54% stake) with Rs 3,619 crore, Telecommunications Consultants India (Rs 3,443 crore) and Bharat Petroleum Corporation (Rs 2,413 crore).
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Going by the performance of the CPSEs so far, the dividend receipts from these companies may exceed Rs 60,000 crore for the second year in a row in FY25 as against the target of Rs 56,260 crore.
As against the budget estimate of Rs 50,000 crore, the dividends from CPSEs and other residual stakes in other firms had fetched the Centre Rs 63,749 crore in FY24, the highest in any financial year.
These CPSE dividends, other than from the Reserve Bank of India and state-run financial institutions, have been driven by robust performance in a wide spectrum of sectors including petroleum, energy, mining and commodities.
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Higher dividend receipts from CPSEs will further cushion the government’s fiscal deficit in FY25. Thanks to the dividend of Rs 2.11 trillion from the RBI as against the budget estimate of Rs 80,000-90,000 crore, the government has pegged the fiscal deficit for FY25 at 4.9% of GDP from 5.1% estimated in the interim budget.
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