Business

PSUs To Deliver Record Dividend Boost For Investors

Public sector undertakings (PSUs) will likely distribute an unprecedented Rs 1.3-1.4 lakh crore in dividends this fiscal year, benefiting both the government and retail investors.

This surge in payouts aligns with PSUs’ projected profits surpassing Rs 3.5 lakh crore for the first time, marking a 10% increase over the previous year.

In line with government directives, the Department for Investment and Public Asset Management (DIPAM) and the Department of Public Enterprises (DPE) are ensuring compliance with dividend policies that require at least 30% of profits or 4% of net worth, shared with investors.

Arunish Chawla, Secretary of DIPAM and in charge of DPE stated, “We envision public enterprises as role models in the stock market, and we encourage the private sector to follow suit. By declaring fair dividends, we aim to restore the confidence of ordinary investors in the stock market.”

Also Read: MIAL Proposes Tariff Revision To Fund Infrastructure Upgrades

Out of 266 PSUs, 66 trade on stock exchanges.

The higher dividend payouts will likely yield an additional Rs 10,000 crore for the government, potentially aiding in fiscal deficit management, currently at 4.8% of GDP.

The government has allocated Rs 2.9 lakh crore in total dividend receipts, incorporating contributions from the Reserve Bank of India, public sector banks, and insurance firms.

Capital expenditure by central PSUs is estimated to reach Rs 3.8 lakh crore this fiscal, with projections rising to Rs 4.3 lakh crore in 2025-26.

Also Read: India’s Direct Tax Collections Rise 16.15% To Rs 25.86 Lakh Crore In FY 2024-25

Khalid Raza Khan

Recent Posts

105 Electric Buses Flagged Off From DTC: BJP MP Yogesh Chandolia

BJP MP Yogesh Chandolia stated on June 27 that the Delhi government developed 105 electric…

16 mins ago

Alia Bhatt Writes Heartfelt Note For Rekha, Calls Her ‘ReMaa’

Alia Bhatt graced the screening of ‘Umrao Jaan’ in a pink saree effortlessly re-creating Rekha’s…

50 mins ago

Nationwide Mediation Campaign To Tackle India’s Pending Court Cases From July 1

The National Legal Services Authority (NALSA) and the Supreme Court Mediation and Conciliation Project Committee…

1 hour ago

Adani Group Joins Puri Rath Yatra With Devotion And Service

The historic and spiritual grandeur of the Puri Rath Yatra reached a new height this…

2 hours ago

AI Tool Developed To Enhance Personalised Cancer Treatment

Garvan Institute of Medical Research along with Yale School of Medicine created AAnet to enhance…

2 hours ago

Jaishankar Says Congress Yet To Apologise For Emergency; Calls It ‘Murder Of Constitution’

External Affairs Minister S Jaishankar criticised the Congress for failing to apologise for the 1975…

5 hours ago