Lok Sabha Question No. 1525 (UNSTARRED), answered on 2015-12-08
Subject: Dividend from PSUs
Ministry: HEAVY INDUSTRIES AND PUBLIC ENTERPRISES
Asked by: SUDHEER GUPTA, GAJANAN CHANDRAKANT KIRTIKAR, SUNIL BALIRAM GAIKWAD, NARANBHAI KACHHADIA, KUNWAR HARIBANSH SINGH

## GOVERNMENT OF INDIA MINISTRY OF HEAVY INDUSTRIES AND PUBLIC ENTERPRISES

## DEPARTMENT OF PUBLIC ENTERPRISES

LOK SABHA UNSTARRED QUESTION NO. 1525 TO BE ANSWERED ON 08.12.2015 Dividend from PSUs

## 1525:  SHRI SUDHEER GUPTA, SHRI GAJANAN KIRTIKAR, DR. SUNIL BALIRAM         GAIKWAD, SHRI NARANBHAI  KACHHADIYA AND KUNWAR HARIBANSH SINGH :

Will the Minister of HEAVY INDUSTRIES AND PUBLIC ENTERPRISES be pleased to state:

- (a)    the  quantum  of  dividend  received  by  the  Government  from  the  profit-making  Central Public Sector undertakings during the last three years and the current year, PSU-wise;
- (b)  whether  the  Government  has  sought  any  specific  dividend  from  leading  central  public sector enterprises;
- (c)  if so, the details thereof and the reasons therefor;
- (d) whether this move will affect the financial health of these PSUs; and
- (e) if so, the corrective steps taken/being taken by the Government in this regard?

## ANSWER

## THE MINISTER OF STATE FOR HEAVY INDUSTRIES AND PUBLIC ENTERPRISES

## (SHRI G. M. SIDDESHWARA)

(a):  As  per  information  available  in  Public  Enterprises  Survey  2013-14,  the  details  of dividend paid by the profit making Central Public Sector Enterprises (CPSEs) for the last 3 years is given in table below;

Table:

| Years   |   No. of CPSEs paid Dividend |   Dividend paid (Rs. in crore) |
|---------|------------------------------|--------------------------------|
| 2013-14 |                           99 |                          65115 |
| 2012-13 |                          100 |                          49703 |
| 2011-12 |                          104 |                          42627 |

The CPSE-wise details of dividend declared / paid by the CPSEs is given at pages S-8 to S11 of Statement 2 of Volume I of Public Enterprises Survey 2013-14 which was laid on the Table of both the Houses of the Parliament on 26.02.2015.

(b)  &  (c):  CPSEs are  guided by the  guidelines issued by Ministry of Finance on Dividend vide  O.M.  No.  7(2)/E-Coord/2005  dated  23 rd November  2005,the  relevant  portion  is reproduced below:

'All  profit-making  Public  Sector  Enterprises  (PSEs),  which  are  essentially  commercial enterprise, subject to specific guidelines issued from time to time, will declare a minimum dividend  on  equity  of  20%  or  a  minimum  dividend  payout  of  20%  of  post-tax  profits, whichever is higher, subject to availability of disposable profits.  In respect of Oil, Petroleum, Chemical and other infrastructure sectors this amount would be 30%.  Besides, profit making companies with large cash surpluses and without firm plans for reinvestment shall declare special dividends'.

(d)  &  (e):  Dividend  is  paid  out  of  profits  after  complying  with  the  provisions  of  the Companies  Act  keeping  in  view  Ministry  of  Finance  guidelines  and  affordability  of  the CPSEs. It is not likely to affect the financial health of the CPSEs.

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