Context: The Centre’s dividend receipts from non-banking PSUs have nearly doubled since 2020, reaching ₹74,000 crore in FY 2024–25.
About PSU Dividends:
- PSU dividends are profit shares distributed by Central Public Sector Enterprises (CPSEs) to the Government of India, their majority shareholder.
- Trends in Dividend Growth:
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- Sharp increase: From ₹39,558 crore in FY 2020–21 to ₹74,017 crore in FY 2024–25.
- Sectoral reliance: 42% of dividends came from five firms — Coal India, ONGC, IOC, BPCL, GAIL.
- OMCs’ trend: IOC & BPCL dividends rose by 255% since 2022–23, despite falling oil prices.
- Policy shift: In Nov 2024, DIPAM mandated minimum 30% of PAT or 4% of net worth as annual dividend.
Relevance in UPSC Exam Syllabus:
- GS Paper 3 – Economy:
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- Role of PSUs in fiscal policy and revenue generation
- Government’s disinvestment vs. dividend strategy
- Fiscal consolidation and non-tax revenue trends
- GS Paper 2 – Governance & Policy:
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- Centre–PSU relations and accountability frameworks
- Impact of policy directives from ministries like DIPAM
