Govt asks IOC, ONGC to pay 2nd interim dividend to manage revenue shortfall

Sources said the government is struggling to meet the revised fiscal deficit target of 3.4 per cent in view of shortfall in GST collections

Grappling a shortfall in tax revenues, the government has pressed cash-rich PSUs like Indian Oil Corp (IOC) and Oil and Natural Gas Corp (ONGC) to pay a second interim dividend for the current fiscal after seeking regulatory nods.
 

While IOC has called a board meeting on March 19 to consider paying a second interim dividend, ONGC has declined saying it does not have surplus cash to make such payments within a month of an interim dividend payout, sources with direct knowledge of the development said.
 

As per regulations, a company cannot declare a second dividend within a month of the