FinMin expects good amount of dividend from PSUs

New Delhi: The Finance Ministry today said it expects the public sector units to pay “good amount” of dividend in the current fiscal.

“The meetings (with PSUs) are going good. I hope we will be getting some good amount (of dividend). Effort is on,” Economic Affairs Secretary R Gopalan told reporters here.

Pressed hard for funds, Finance Ministry officials are meeting the heads of PSUs to persuade them to increase dividend payment to the government.

At the meeting with the PSU chiefs in sectors like steel, coal, mines, power and oil in the last two days, however, they failed to obtain an assurance of larger dividend receipt from companies.

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While a majority of the PSUs said they would retain the dividend paid last year as paying out of their cash reserve would hinder their expansion plans, oil companies hinted that the final dividend would be decided after assessing the

under-recoveries and subsidy provided by the government.

“We are conscious of the fact that they also need resources for their own financing programme. They also understand our need. So in the spirit of cooperation we are trying to see how our needs can be met consistent with our

requirement,” Gopalan said.

The Finance Ministry has already discussed the issue with PSUs like SAIL, NALCO, PFC, REC, ONGC, IOC and Oil India among others.

“The final dividend would depend on the subsidy burden. If the burden remains reasonable, then we will give what we normally give - that is between 320 to 330 percent.

Hopefully it should be in that range, if subsidy burden does not increase unduly,” ONGC Chairman and MD Sudhir Vasudeva had said after the meeting.

PTI