PSU dividend targets may be missed due to impact on oil industry

The Centre expects that the target of dividends from non-financial state-owned enterprises (PSUs) could be missed this year. Oil and gas companies contribute a major chunk of PSU dividends. However, they might not be able to pay as much as previous years, or not at all, because of how crude oil prices have impacted them, officials said.

The Budget Estimate for dividends from PSUs is Rs 40,000 crore. So far, the Centre has garnered Rs 15,766 crore. Even with such healthy receipts so far, a shortfall is expected.

“Oil marketing companies have been facing huge under-recoveries due to high-crude prices. The state-owned