CPSEs deliver record ₹74,016 crore dividend bonanza to govt in FY25; Coal India, ONGC lead payout

The Central Public Sector Enterprises (CPSEs) have given the highest-ever aggregate dividend of ₹74,016 crore to the central government in 2024-25. Coal India (Rs 10,252 crore), ONGC (₹10,001 crore), Indian Oil Corporation (₹5090 crore), Power Grid Corporation of India (₹4824 crore) and NTPC Ltd (₹4088 crore), were the top five contributors.

The cumulative CPSE dividend to the central government has been on the rise in recent years and was ₹63,749 crore in 2023-24, ₹59,533 crore in 2022-23, ₹59,294 in 2021-22 and ₹39,750 crore in 2020-21.

The Department of Investment and Public Asset Management (DIPAM) said the increase in dividend was part of the value creation strategy for minority shareholders of the public sector enterprises. While the government share was only half of ₹1.5 lakh crore that was distributed by CPSEs to its shareholders, half of which went to common investors, Arunish Chawla, secretary, DIPAM said.

According to him, private listed companies should also follow the DIPAM model of dividend distribution to ‘make share markets a better place for aam aadmi’. “The CPSEs have distributed record dividend in FY25 which amounts to ₹1.5 lakh crore in aggregate, of which government share is worth ₹74,016 crore. While the market capitalisation of CSPEs is only 10% of the overall market cap they have distributed approximately 25% of overall dividends”, Chawla said.

He said fund managers should include PSE stocks in their portfolios so that common investors, senior citizens and minority shareholders can deeply partake in the value create by public enterprises. We would also nudge the private companies to declare fair dividends to their minority shareholders”, Chawla said.

The secretary also pointed out that the CPSE dividend did not come at the cost of capital expenditure as the companies have met their capex targets 100% last year and will do it this year too.

The CPSEs that have distributed more than ₹1000 crore as dividends in 2024-25 include Indian Oil Nuclear Energy Corporation Ltd, Airports Authority of India, Telecommunications Consultants (India) Ltd, Hindustan Aeronautics Ltd, Hindustan Zinc Ltd, Bharat Petroleum Corp Ltd, GAIL (India) Ltd, Oil India, NHPC, Power Finance Corporation, Indian Railway Finance Corporation and NMDC Ltd.