Government's dividend receipts surge to Rs 74,016.68 crore in FY25, Coal India and ONGC lead payouts

Coal India Limited is the world's largest coal-producing company

The central government has received a record Rs 74,016.68 crore in dividend receipts from central public sector enterprises (CPSEs) in the financial year 2024-25, surpassing the Rs 63,749.29 crore collected in FY24. The latest figures for FY25 reflect a nearly 16 percent rise over the previous year, according to official sources.

“Coal India Limited, Oil and Natural Gas Corporation (ONGC) and Indian Oil Corporation Limited (IOCL) emerged as the highest dividend-paying CPSEs for the year,” a senior government official told Moneycontrol.

Coal India Limited, the world's largest coal-producing company, emerged as the highest contributor, remitting Rs 10,252.09 crore in dividends to the exchequer. It was closely followed by ONGC, India's state-owned oil and gas major, which paid Rs 10,001.97 crore. Indian Oil Corporation Limited (IOCL), the country's leading fuel retailer, contributed Rs 5,090.54 crore, while Power Grid Corporation of India Limited (PGCIL) and NTPC paid Rs 4,824.59 crore and Rs 4,088.16 crore, respectively, he said.

Fiscal Significance

Dividend receipts from CPSEs are a crucial non-tax revenue source for the government, aiding in fiscal management. The surge in payouts aligns with the Centre's strategy to extract higher returns from public sector undertakings while ensuring that they maintain profitability. The robust dividends also reflect the strong financial health of these enterprises, which continue to play a critical role in the economy.

The increase in dividend receipts marks a steady upward trend in the government's earnings from CPSEs. In FY22 and FY23, the collections stood at Rs 59,294 crore and Rs 59,533 crore, respectively, before climbing to Rs 63,749.29 crore in FY24. Government data over the past decade shows a fluctuating trend in dividend receipts. The collections were Rs 51,852 crore in FY17, dropping to Rs 30,616 crore in FY16 and Rs 31,691.91 crore in FY15. However, in recent years, there has been a clear upward trajectory, with FY25 setting a new record.