Coal India proposes Rs 5,684 cr dividend to govt for FY12

State-run Coal India (CIL) has proposed to pay a higher dividend of Rs 5,684.73 crore to the government for 2011-12 compared to the last fiscal.

While the state-owned Neyveli Lignite Corporation (NLC) has planned to pay a dividend of Rs 439.51 crore to the Coal Ministry for 2011-12, an official document said.

"CIL and NLC together are proposing to pay a dividend of Rs 6,124.24 crore to the government for 2011-12," the document said.

Coal India had paid a dividend of Rs 2,217 crore to the government for last fiscal, while Rs 2,210 crore for 2009-10 and Rs 1,705 crore for 2008-09.

The higher payout is expected to provide some relief to the government which is facing financial problems due to rising subsidy bill and poor receipt from disinvestment.

Earlier, senior officials of the Finance Ministry led by Secretary of Economic Affairs (DEA) R Gopalan have held a series of consultations with the heads of state-owned enterprises, including PSU banks, to persuade them to raise the dividend payout to the government.

During 2010-11, the government collected Rs 25,978 crore as dividend from public sector enterprises. The target for the current fiscal was pegged at Rs 23,495 crore.

On the NLC dividend payout, the official document said, "The shareholders of the company at the 55th Annual General Meeting held on September 12 have declared a dividend at the rate of 23% for the financial year 2010-11. The total dividend payout... Amounts to Rs 448.47 crore."

NLC had paid a divided of Rs 313.92 crore for 2009-10 and Rs 313.92 crore for 2008-09 as well, the statement said.

The divided figures of Singareni Collieries Company (SCCL) to be paid for the current fiscal were not available.

The paid up capital of CIL is Rs 6,316.36 crore, while in the case of NLC and SCCL it is Rs 1,569.64 crore and 1,733.20 crore.