PSUs not ready to raise dividend payout

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PSUs not ready to raise dividend payout

The finance ministry today failed to obtain an assurance of larger dividend receipt from companies in the energy sector with large power sector PSUs saying they would retain the payout at last year's level.

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The finance ministry today failed to obtain an assurance of larger dividend receipt from companies in the energy sector with large power sector PSUs saying they would retain the payout at last year's level.

Oil marketing companies, which are facing problems on account of rise in crude oil prices in the international market, told the finance ministry that their dividend payout would depend upon subsidies to be provided by the government.

Pressed hard for funds, finance ministry officials are meeting with the heads of PSUs to persuade them to increase dividend payment to the government. Today was the second such meeting. Yesterday, Department of Economic Affairs Secretary R Gopalan had met representatives of steel and mining companies which also indicated that they would retain the dividend paid last year.

"The final dividend would depend on the subsidy burden. If the burden remains reasonable, then we will give what we normally give -- that is between 320 to 330%.

Hopefully it should be in that range, if subsidy burden does not increase unduly," ONGC Chairman and MD Sudhir Vasudeva said.

Power Finance Corporation CMD Satnam Singh said, "We gave 50 per cent dividend last year. Being a listed company we would give atleast 50 per cent dividend this year as well."

Besides heads of ONGC and PFC, today's meeting was attended by CMDs of Oil India , IOC , GAIL , Rural Electrification Corporation and SJVNL. IOC Chairman R S Butola said in the current fiscal the company is likely to face under-recoveries of Rs 76,000 crore.

"In the first half we had Rs 35,600 crore of under recoveries. So we are looking at additional support from the government," Butola said adding that the government is yet to make cash disbursal of Rs 16,000 crore for the first half of the year as subsidy.