The Central government has collected ₹59,638 crore as dividends from its shares in Central Public Sector Enterprises (CPSEs) in FY25. This amount is higher than the revised target of ₹55,000 crore. Including disinvestment proceeds of ₹8,625 crore, the total revenue from the Department of Investment and Public Asset Management (DIPAM) now stands at ₹68,263 crore.
After the June 2024 post-election Budget, the government has focused more on increasing non-tax revenue rather than disinvestment. Oil and gas companies have contributed the most to the CPSE dividend pool this year.
CPSE dividends are a key part of the government’s non-tax revenue, along with the Reserve Bank of India’s surplus and earnings from telecom spectrum sales. For FY25, the government has set a revised target of ₹5.31 lakh crore for non-tax revenue.
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To make better use of capital, DIPAM updated its guidelines on CPSE capital restructuring on November 18, 2024. These new rules replace the old ones from 2016 and aim to improve CPSE performance, increase shareholder returns, and attract more investors.
In recent years, CPSE dividend collections have consistently beaten targets. For example, dividends grew from ₹39,750 crore in FY21 to ₹59,294 crore in FY22, ₹59,533 crore in FY23, and ₹63,749 crore in FY24.
Looking ahead, the government has set a higher dividend target of ₹69,000 crore for FY26, showing its focus on earning more from state-owned companies.
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