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Chidambaram tells PSUs to up dividends

Chidambaram tells PSUs to up dividends
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Finance Minister P. Chidambaram Tells PSUs To Up Dividends, Government Will Not Accept Dividend. Finance minister P. Chidambaram on Friday told heads...

New Delhi: Finance minister P. Chidambaram on Friday told heads of large state-owned companies that the government will not accept less dividend that what it received during the last financial year.

“Dividend payments by PSUs will not be less than last year's. In no case will we accept dividend less than last year’s,” he told reporters after meeting heads of blue-chip PSUs such as Oil & Natural Gas Corp, Indian Oil, GAIL India, Steel Authority of India, NTPC and Coal India.

The government is seeking to keep its fiscal deficit within the budgetary target of 4.8 per cent of GDP. Higher dividend from PSUs would make up part of the shortfall from disinvestment and lower receipts in other heads of accounts due to slowing economic growth. The ministry, according to officials, is hopeful of meeting the dividend receipt target in the current fiscal and has not sought any special dividend.

Finance Minister P. Chidambaram Tells PSUs To Up Dividends

However, they said the situation would be reviewed in January. The government received Rs 55,443 crore as dividend and profit in the last fiscal.

The target in the current financial year is Rs 73,866 crore. Chidambaram also discussed capital expansion plans of the PSUs with the objective of promoting investment and growth.

“Most of the PSUs will achieve their capex plan. Some half-a-dozen may not. We will revisit those cases in January,” the minister said. Most of the PSU heads assured the minister that they would meet the capex target for the current fiscal. ONGC chairman Sudhir said, “The finance minister was fully satisfied by the performance of ONGC. Our H1 capex target was over Rs 14,000 crore.”

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