The government obtains substantial dividends from BHEL and Coal India Ltd

21 Sep 2023 , 02:07 PM

The central government’s revenue stream has been bolstered by significant dividend payments from important public sector organisations.

The National Thermal Power Corporation (NTPC), India’s largest power utility company, gave the government roughly Rs 1,487 crore, according to the Secretary of the Department of Investment and Public Asset Management (DIPAM).

The Government has received about Rs 1556 crore and Rs 88 crore as dividend tranches from Coal India Ltd. and BHEL, respectively, according to a post on X by the Secretary of the Department of Investment and Public Asset Management.

Companies may decide to give their shareholders dividends as a kind of compensation using a percentage of their earnings. In this instance, the government’s revenue has been provided by NTPC, a state-owned business with an installed capacity of 73,824 megawatts (MW) (including Joint Ventures). By 2032, NTPC wants to have 130 GW of capacity.

Additionally, the government previously received a dividend of around Rs 1,701 crore from Power Grid Corporation of India Limited (PGCIL).

The revenue generated through dividend payments serves as evidence of the public sector enterprises’ sound financial condition and performance. It helps the government manage its financial condition more skillfully.

The government also got sizeable dividend payments from Indian Oil Corporation Ltd. (Rs 2,182 crore) and Bharat Petroleum Corporation Ltd. (Rs 460 crore) earlier in September, a sign of these energy behemoths’ sound financial standing.

These monetary inflows from public sector businesses support several government programmes and projects, assisting India’s economic expansion.

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