Coal India Limited And ONGC Top The List As Government’s Dividend From CPSUs Surge to Rs 74,016.68 Crore in FY25
IOCL followed the list by contributing Rs 5,090.54 crore, while PGCIL and NTPC Limited handed out Rs 4,824.59 crore and Rs 4,088.16 crore respectively
The central government has received a record-breaking Rs 74,016.68 crore in dividend receipts from Central Public Sector Undertakings (CPSUs) in the financial year 2024-25 (FY25), marking a significant 16% increase from Rs 63,749.29 crore in FY24. This rise underscores the growing profitability of CPSUs and the government’s strategy to optimize returns from these enterprises, according to official sources.
Leading Dividend Contributors
Coal India Limited (CIL), the world’s largest coal producer, led the payout charts with a dividend remittance of Rs 10,252.09 crore to the government. State-owned oil and gas giant Oil and Natural Gas Corporation (ONGC) followed closely, contributing Rs 10,001.97 crore. Indian Oil Corporation Limited (IOCL), India’s top fuel retailer, provided Rs 5,090.54 crore, while Power Grid Corporation of India Limited (PGCIL) and NTPC Limited contributed Rs 4,824.59 crore and Rs 4,088.16 crore, respectively.
Fiscal Significance and Policy Implications
Dividend receipts from CPSUs form a vital component of the government’s non-tax revenue, aiding in fiscal consolidation and public expenditure planning. The steady rise in these payouts reflects the financial health of these enterprises and the government’s emphasis on maximizing shareholder value while ensuring operational efficiency.
Over the past decade, dividend collections from CPSUs have demonstrated an upward trend. In FY22 and FY23, the government collected Rs 59,294 crore and Rs 59,533 crore, respectively, before climbing to Rs 63,749.29 crore in FY24. In comparison, receipts stood at Rs 51,852 crore in FY17 but had dropped to Rs 30,616 crore in FY16 and Rs 31,691.91 crore in FY15. The sustained growth in recent years highlights the increasing profitability and efficiency of state-run enterprises.
Looking Ahead
The surge in CPSU dividends aligns with the government’s broader economic strategy, including fiscal prudence and strategic disinvestment. By maintaining a balance between extracting higher dividends and ensuring long-term sustainability, the government aims to strengthen the role of public sector undertakings in national development. As CPSUs continue to perform robustly, their contributions are expected to remain a critical pillar of the government’s revenue framework.
The record-breaking dividend receipts in FY25 reaffirm the public sector’s resilience and its growing significance in India’s economic landscape.
Government’s Dividend Receipts Surge to Rs 74,016.68 Crore in FY25, Led by Coal India and ONGC
The central government has received a record-breaking Rs 74,016.68 crore in dividend receipts from Central Public Sector Undertakings (CPSUs) in the financial year 2024-25 (FY25), marking a significant 16% increase from Rs 63,749.29 crore in FY24. This rise underscores the growing profitability of CPSUs and the government’s strategy to optimize returns from these enterprises, according to official sources.
Leading Dividend Contributors
Coal India Limited (CIL), the world’s largest coal producer, led the payout charts with a dividend remittance of Rs 10,252.09 crore to the government. State-owned oil and gas giant Oil and Natural Gas Corporation (ONGC) followed closely, contributing Rs 10,001.97 crore. Indian Oil Corporation Limited (IOCL), India’s top fuel retailer, provided Rs 5,090.54 crore, while Power Grid Corporation of India Limited (PGCIL) and NTPC Limited contributed Rs 4,824.59 crore and Rs 4,088.16 crore, respectively.
Fiscal Significance and Policy Implications
Dividend receipts from CPSUs form a vital component of the government’s non-tax revenue, aiding in fiscal consolidation and public expenditure planning. The steady rise in these payouts reflects the financial health of these enterprises and the government’s emphasis on maximizing shareholder value while ensuring operational efficiency.
Over the past decade, dividend collections from CPSUs have demonstrated an upward trend. In FY22 and FY23, the government collected Rs 59,294 crore and Rs 59,533 crore, respectively, before climbing to Rs 63,749.29 crore in FY24. In comparison, receipts stood at Rs 51,852 crore in FY17 but had dropped to Rs 30,616 crore in FY16 and Rs 31,691.91 crore in FY15. The sustained growth in recent years highlights the increasing profitability and efficiency of state-run enterprises.
Looking Ahead
The surge in CPSU dividends aligns with the government’s broader economic strategy, including fiscal prudence and strategic disinvestment. By maintaining a balance between extracting higher dividends and ensuring long-term sustainability, the government aims to strengthen the role of public sector undertakings in national development. As CPSUs continue to perform robustly, their contributions are expected to remain a critical pillar of the government’s revenue framework.
The record-breaking dividend receipts in FY25 reaffirm the public sector’s resilience and its growing significance in India’s economic landscape.
