Government receives substantial dividend from Coal India Ltd and BHEL
Sep 20, 2023
New Delhi [India], September 20 : The central government has received significant dividend tranches from key public sector companies, contributing to its revenue stream.
According to the Secretary of the Department of Investment and Public Asset Management (DIPAM), the government received about Rs 1,487 crore from the National Thermal Power Corporation (NTPC), India's largest power utility firm.
Secretary, Department of Investment and Public Asset Management posted on X, “Government has respectively received about Rs 1556 crore and Rs 88 crore from Coal India Ltd and BHEL as dividend tranches”.
Dividends are a form of reward that companies may choose to provide to their shareholders from a portion of their earnings. In this case, NTPC, a state-owned company with an installed capacity of 73,824 megawatts (MW) (including Joint Ventures), has contributed to the government's revenue. NTPC aims to become a 130 GW company by 2032.
Additionally, the government also received about Rs 1,701 crore from Power Grid Corporation of India Limited (PGCIL) as a dividend on a previous occasion.
The revenue collection through dividends demonstrates the financial health and performance of these public sector companies. It contributes to the government's efforts to manage its fiscal situation effectively.
Earlier in September, the government had also received substantial dividend tranches from Indian Oil Corporation Ltd (Rs 2,182 crore) and Bharat Petroleum Corporation Ltd (Rs 460 crore), indicating a favourable financial position for these energy giants.
These financial inflows from public sector companies help support various government initiatives and projects, contributing to India's economic growth and development.
