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PSUs asked by govt to pay higher dividends have little room for more

Listed PSUs have paid dividend worth Rs 2.75 trn in last 5 yrs

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The amount the PSUs paid was separate from the sums they paid the government for share buy-backs

3 min read Last Updated : Nov 14 2020 | 12:43 AM IST

The central government has asked public sector undertakings (PSUs) to fork out higher equity dividends and at more frequent intervals to compensate for the shortfall in other revenues. However, the balance sheets and profitability of listed PSUs suggest that they are running out of elbowroom.

In the past five years, leading listed PSUs such as Oil and Natural Gas Corporation, Indian Oil, NTPC, Power Grid Corporation, Coal India, and National Mineral Development Corporation, among others, have either maintained or increased their dividend pay-out despite a steady decline in their profitability and rising indebtedness due to the slowdown. (See charts)

In FY20, the

Topics : public sector undertakings PSUs PSU dividends

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