Government Set to Receive Record ₹67,000 Crore Dividend from Non-Financial CPSEs

The Indian government is set to collect a record-breaking dividend of ₹67,000 crore from non-financial Central Public Sector Enterprises (CPSEs) in the current fiscal year (FY 24-25). This significant boost is driven by strong profitability in key state-run sectors, including petroleum, coal, and power. With dividend receipts already nearing ₹60,000 crore, the final figure is expected to surpass the revised estimate of ₹55,000 crore, providing much-needed financial support to the exchequer.

CPSEs Fuel the Surge

The robust dividend payout is primarily supported by state-owned companies operating in the energy sector. Petroleum firms have led the way, contributing ₹21,443 crore, while coal and power sector CPSEs have paid ₹10,402 crore and ₹8,369 crore, respectively. Together, these sectors have accounted for over 67% of the total dividend collection so far, reflecting their strong profitability and the government’s policy of ensuring consistent dividend payouts from these enterprises.

Offset for Disinvestment Shortfall

The surge in dividends comes as a crucial offset for the Centre’s shortfall in disinvestment receipts. The government had set a revised target of ₹33,000 crore for disinvestment and monetisation, but so far, only ₹8,625 crore has been raised. The higher-than-expected dividend receipts will help bridge this gap, ensuring stability in government finances despite lower-than-anticipated disinvestment proceeds.

The Policy Behind the Growth

The government’s 2020 policy requiring CPSEs to distribute regular dividends after setting aside capital for growth has played a key role in this consistent increase in payouts. Over the last 5 years, dividend revenues from these entities have consistently surpassed the annual estimates, reflecting both strong financial performance and disciplined dividend policies.

Outlook for FY26

Looking ahead, the government has budgeted ₹69,000 crore in dividend receipts from CPSEs for the 2025-26 fiscal year. This optimistic projection is based on expectations of continued strong profitability, especially among petroleum companies, which are likely to benefit from a moderation in global oil prices. With global crude prices dropping below $70 per barrel due to increased drilling in the US and slowing Chinese demand, energy sector CPSEs could continue to deliver robust returns.

Conclusion

The record ₹67,000 crore dividend from non-financial CPSEs highlights the strong financial health of India’s state-owned enterprises. As the government continues to rely on these dividends to support fiscal management, the role of CPSEs in ensuring economic stability remains crucial. With a strategic focus on sustained profitability and prudent dividend policies, these public sector entities are poised to remain key contributors to the country’s financial landscape.

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